Mr. A has some shares in a Public Ltd Company.
Mr. A dies. No Will made by him. Death Certificate available.
Mr. B, son of Mr. A wants to get these shares transferred-transmitted in his name.
Wat procedure?
Tq.
Guest (Guest) 22 March 2010
Mr. A has some shares in a Public Ltd Company.
Mr. A dies. No Will made by him. Death Certificate available.
Mr. B, son of Mr. A wants to get these shares transferred-transmitted in his name.
Wat procedure?
Tq.
Smita_L01042008 (student) 22 March 2010
Dear Mr. Pankaj,
the procedure you are looking for is "transmission of shares" which is done on death of Beneficiary. kindly check whether shares are maintained in physical form or in his demat account.
Gundlapallis (Advocate) 23 March 2010
The company shall require succession certificate from the court to effect transmission of shares.
Ankur Garg (Company secretary) 23 March 2010
TRANSMISSION OF SHARES
Transmission of shares
A transmission of shares or other interest in a company of a deceased member thereof made by the legal representative of a deceased member of the company shall be considered as transmission of shares by operation of law and will be registered by a company in the Register of Members. Execution of transfer deed not required in case of transmission of shares
Transmission shall be subject to the liabilities, if any
In the case of a transmission of shares, shares continue to be subject to the original liabilities, and if there was any lien on the shares for any sums due, the lien would subsist, notwithstanding the devaluation of the shares.
Requirement of documents/evidences for transmission of shares
Where title to shares comes to vest in another person by operation of law, it is not necessary to execute and submit transfer deed. A simple application to the company by a legal representative alongwith the following necessary evidences is sufficient:—
(i) Certified copy of death certificate;
(ii) Succession certificate;
(iii) Probate;
(iv) Specimen signature of the successor.
No requirement of consideration and payment of stamp duty
Since the transmission is by operation of law, neither consideration for transfer nor stamp duty is required on instruments for transmission.
Ankur Garg (Company secretary) 23 March 2010
Procedure for transmission of shares
(i) The survivors in case of joint holding can get the shares transmitted in their names by production of the death certificate of the deceased holder of shares. The company records the particulars of the death certificate and a reference number of recording entry is given to the shareholder so as to enable him to quote such number in all future correspondence with the company.
(ii) If a member of a company dies and he leaves after him a will or letter of administration then the survivors shall get a copy of 'will' certified under the seal of a Court of competent jurisdiction. The certified copy of the will is called a 'probate' and it shall be forwarded to the company.
(iii) If a member of a company dies without leaving a will, then succession certificate issued by a Court of competent jurisdiction shall be submitted to the company.
(iv) In case a member of a company becomes bankrupt, the official receiver shall produce documentary evidence of his appointment from a competent Court.
Right to dividend, rights shares and bonus shares to legal representative shall be kept in abeyance
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