cpc

transfer of shares after eath, when there is no will


I have a small query please :

My father has died without a will.

He was holding shares worth Rs.5 lacs in a co.

The heirs include his wife (i.e. my mother), and 2 sons (including me)

Now, we both brothers are willing to give NO-OBJECTION in favour of our mother for the shares to be transferred in her name.

How do we go about it ? what all documents need to be prepered ??

The value of shares is a little less than rs. 5 lacs (approx. Rs. 4.97 lacs)

Please guide us

Thank you

AK Agarwal

 
Reply   
 
Advocate-on-Record Supreme Court of India

Dear Querist,

 

Please get succession certificate from the competent district court of your area/district. Then get an relinquishment deed executed in favour of your mother & registered. Thereafter, submit those two docs to the Co. and name transfer shall take place as per the Companies Act.

 

Trust this would suffice.

 

Rabin Majumder
Advocate & Attorney
NuDelhiLawFora
At:
Ch. 91, Sh. AK Sen Chambers Block,
Supreme Court of India
New Delhi - 110001
Also at:
C/o 53, Babar Lane
Bengali Market
Near Central Bank of India
New Delhi – 110001
 

 

 
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Advocate

A very perfect and clear answer to your query by Mr. Rabin Majumder.

 
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Dear AK Agarwal,


I had faced a similiar situtaion. i had legal hire certificate, concerned person death certificate. i was asked execute an indemnity bond by the company and i was asked to fill the application provided by the company (the application itself contained no objection certificate) along with attested copy of legal hire certificate and death certificate. it took about 2 months time, the share transfer can be made at the board meeting only so have wait till the next board meeting , normally once in a month there will be a board meeting in a company. Kindly contact the company , they will send the procedure , application and will inform about the required documents (documents will same as mentioned by the advocates here).

 

Hope it's useful

 

good luck

 
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LEGAL COUNSEL

The procedure for transmission of shares is fairly simple and driven by the guidelines of Securities Exchange Board of India. In the case explained by you there is no need for succession certificate/probate of will and a simple alternative procedure based on indemnity to be executed by the claimant could be applied. Please contact the Company Secretarial Department or the Registrars of the Company for the exact procedure. In case the procedure is difficult, please revert with your queries to the forum, for guidance.

Vasudevan

 
Reply   
 

Going to a District Court, obtaining a succession certificate and getting a relinquishment deed registered and then getting the shares transmitted is a lengthy and costly affair.

You can try out the solution suggested by Mr. Vasudevan. I my opinion, the shares can be transmitted in the name of your mother after executing an indemnity bond to which both the sons should be consenting witnesses.

In the alternative all of you can be parties to the indemnity bond and get the shares transmitted jointly in the name of mother and two sons. Thereafter both the sons in turn can transfer the shares in the name of mother.

The stamp duty involved in the above mentioned procedure is very minimal when compared to the District Court etc., process.

 

Satish Kuna 

 
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Advocate

Dear Mr. Satish,

I did not certainly expect this sort of an answer from you.  First tell me whether any one can go and submit an indemnity bond and seek transfer of the share in his name?  How do you first of all establish that these persons are in any way related to and are entitled to the shares of the deceased person?  I would really want to know from you.

 
Reply   
 

Dear Mr. Ramachandran

Please read the suggestion of Mr. vasudevan. I was only suggesting to follow the method suggested by Mr. Vasudevan, in case there was any such provision.

In Andhra Pradesh we have a procedure where the Mandal Revenue Officer can issue a legal heir certificate. Based on such a certificate it can be established that such and such a person is the legal heir and in the instant case all the three people i.e the mother and two sons can execute an indemnity bond (provided there is any procedure/guideline as per SEBI as suggested by Mr. Vasudevan.

In case Mr. Vasudevan happens to read this, probably he can throw more light on this aspect.

 

Satish Kuna 

 
Reply   
 

DEAR SIR/MADAM

MY DAD IS HOLDING THE 50 SHARE OF PRIVATE LTD. CO. WE HAVE GIVEN THE SHARES TO TRANSFER. BUT THEY SAY THEY WANT THE PURCHASE PROOF.

AS ON TODAY WE DONT HAVE ANY KIND OF PROOF AND DONT HAVE ANY CONTACT WITH THE SELLER AND THE BROKER. IN THIS CASE WANT CAN I DO? TO TRANSFER SUCH SHARES. THE COSTING OF SUCH SHARES IS RS.2 LAC.

PLS GUIDE ME AS SOON AS POSSIBLE

THANK YOU
 JIGAR SHAH

 
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Deputy Manager

Hi . For transferring the shares in your name, please contact me on whats app at 919885970061

 
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