Transmission of shares

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Chandan Gupta (Querist)
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27 July 2012
Dear Members...

Please suggest whether in case of transmission of shares, shares of deceased member be transmitted to two or more legal heirs or we can only transmitted all shares to a single person?

Plz. its very urgent....

Guest

Guest (Expert)

27 July 2012 It will be transferred in the manner in which it is mentioned in the will / succession certificate in the same ratio or proportion.

If there are more than one person claiming the shares and it is very well justified by will/ succession certificate then you can transfer the shares to them as first holder and second holder.

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Chandan Gupta

Chandan Gupta (Querist)
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27 July 2012
Thanks for your reply...and let me clear some more points....deceased has not executed any will and further we are not desirous to obtain succession certificate from the local court as it will consume more time...

What the process we have to follow for legal heirs point of view and documents to be executed..??

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Chandan Gupta

Chandan Gupta (Querist)
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27 July 2012
Which documents to be executed for transmission of shares.?

Guest

Guest (Expert)

27 July 2012 A simple application to the company by a legal representative alongwith Certified copy of death certificate and Succession certificate is must in the absence of will of deceased.

Transfer deed is not required in the case of transmission of shares

Guest

Guest (Expert)

27 July 2012 Dear Chandan,

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.

Guest

Guest (Expert)

27 July 2012 Transmission could be effected without succession certificate in case of small holdings

In the case of small holdings, transmission of securities may be considered and effected by a company without obtaining succession certificate. However, the Board of directors should ensure that sufficient
evidence has been produced by the legal heirs. The following documents are required to be submitted to the company:—

(a) Certified copy of a death certificate.
(b) Particulars and signature of all legal heirs.
(c) Affidavit on non-judicial stamp paper certified by a first class magistrate or notary public.
(d) Deed for disclaimer.
(e) Indemnity bond on non-judicial stamp paper.
(f) PAN of the legal heir.

With Regards

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Guest

Guest (Expert)

27 July 2012 Specimen of Affidavit by legal heirs of deceased shareholder for Transmission of shares

I, XYZ aged about 45 years, residing at ………………… do solemnly affirm and declare as follows:
1. That 2000 Equity shares in ABC Ltd, bearing distinctive no. from 2001 to 4000 of the face value of Rs. 10
each are registered in the name of Shri PQR in the books of the Company.
2. That Shri PQR died instate on ……………….. at his residence in Indore.
3. That under the Hindu Succession Act, 1956 Smt. XYZ aged 45 years residing at ……………………, Indore
is the only legal heir of Late Shri PQR.
4. That Late Shri PQR has not sold, transferred, pledged or otherwise disposed of the said shares.
5. That the said shares were the separate and self acquired property of Late Shri PQR.
6. That Late Shri PQR has left no other heir than person mentioned in para 3.
7. That I therefore request the Company to transmit the aforesaid shares and register them in my name in the
books of the Company without production of succession certificate or letter of administration.
Dated: …………….. Signature of the Deponent
Before me Signature and seal of Notary
Public/Magistrate

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Guest

Guest (Expert)

27 July 2012 Specimen of Indemnity Bond for Transmission of shares
I, XYZ, aged about 45 years, residing at ………………., Indore do solemnly affirm and declare as follows:
1. That 2000 Equity shares in ABC Ltd, having its registered office at Silver Arc Plaza, Indore bearing
distinctive no. from 2001 to 4000 of the face value of Rs. 10 each and on which Rs. 10 per share is paid are
registered in the name of Shri PQR in the books of the Company.
2. That Shri PQR died instate on ……………….. at his residence in Indore leaving behind Smt. XYZ aged 45
years residing at ……………………., Indore as the only legal heir under the Hindu Succession Act, 1956
entitled to inherit solely the aforesaid shares.
3. That the abovesaid shares were the separate and self-acquired property of Late Shri PQR.
NOW THEREFORE
I, the undersigned, request the Company to transmit the aforesaid shares standing registered in the name of Late
Shri PQR in my name and also to pay me any dividend payable on the aforesaid shares by the Company without
production of succession certificate or letter of administration or probate.
In consideration of the Company having agreed to transmit and register the aforesaid shares in my name on my
executing a bond in favour of the Company, I the applicant hereunder for myself, my executors, administrators and
assigns do jointly and severally hereby covenant with the Company, its successors and assigns that I and each of my
executors, administrators and assigns will, upon the Company transmitting and registering the said shares in my name
and paying to me the dividend already due on the said shares, at all time save, defend, indemnify and keep indemnified
the Company, its successors and assigns, its estate and effects, and its directors, manager, secretary and shareholders
and their heirs, executors and assigns from and against all actions, proceedings, accounts, claims and demands
whatsoever for or on account of the said shares or the dividends or any part thereof, or otherwise in connection with the
shares or the dividends or any part thereof, or otherwise in connection with the same, and from and against all claims,
damages, expenses and losses arising in any manner howsoever.
In witness whereof I, the applicant herein has signed and set my hand this ………………….
WITNESS
1.
2.

Guest

Guest (Expert)

27 July 2012 Specimen of Disclaimer Deed
THIS DISCLAIMER DEED is made at Indore (M.P.) on this day of …………between (1) Shri .............., (2) Shri
.............., (3) Shri ............... and (4) Shri .............. all being sons of Late Shri ……… and all resident of ..............
hereinafter called as "the Disclaimers", of the ONE PART and Smt. .............W/O Late ……….. ........... resident of
........, hereinafter called as Smt. ....., of the SECOND PART.
WHEREAS Shri ………….. now deceased was seized and possessed of the ………….. Equity Shares of Rs. 10 each
fully paid of ………….. property bearing Share Certificate No. .......... to ............. Distinctive No. ....... to ................ and
the said Shri ………….. has died on ........ intestate.
AND WHEREAS the parties to this deed are the only persons entitled to in his estate.
AND WHEREAS on account of their natural love and affection, the disclaimers are desirous to transfer their rights in
the abovesaid shares of ………….. to Smt. ....... for her own absolute use and benefit free from any encumbrances.
NOW THIS DEED WITNESSETH AS FOLLOWS:
(1) In pursuance of the said disclaimer deed, the said disclaimers as beneficial owner hereby assign and release
unto Smt. .......... from all their respective shares and interest in the Equity Shares of ......... as detailed hereinabove
and to hold the same unto the said Smt. ........... as absolute owner without any encumbrance or charge.
(2) The disclaimers hereby agree, undertake and declare that none of them will have any right, title or interest in
the above said Equity Shares of ……….. hereto which is left by the deceased Shri ……….. and Smt. ..........
will hold the said Equity Shares as absolute owner without any encumbrance or charge.
(3) The disclaimers include their respective heirs.
(4) The cost of the execution and registration of this Disclaimer Deed shall be borne by Smt. ............
(5) The disclaimers have obtained independent advice and they are fully aware of meaning and effect of this
deed.
IN WITNESS THEREOF, the parties have set and subscribed their hands to this writing the day and year first
hereinabove written.
Signed and delivered by the within named disclaimers
(1) Shri ...........….....………………..
(2) Shri ...........…….....……………..
(3) Shri ...........……….....…………..
WITNESSES 1.
2.