20 September 2013
dear experts, there is one public limited company, xyz merchandising ltd. in april 2013 one of the director was expired.. who had hold 10 shares in the company so in this case:
what would be the whole brief procedure for transmisn of shares
Requirement of documents 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 along with the following necessary evidences is sufficient:—
(i) Certified copy of death certificate; (ii) Succession certificate; (iii) Probate; (iv) Specimen signature of the successor.
However, requirement of these certificates is not essential and depends on various circumstances of the case. Where a succession certificate has been granted in respect of shares, the company cannot insist on the production of probate or letters of administration; the certificate affords full indemnity to company. [Thenappa Chettiar v Indian Overseas Bank Ltd. (1943) 13 Comp Cas 202 (Mad)].
To, The Board of Directors ………….. Limited 117, Address:
Sub: Transmission of 2,500….. Equity shares held by Mr. X
Ref.: L.F. No. .............
Dear Sir(s),
I have to inform that Mr. X was holding ……2,500 Equity Shares of Rs. 10 each dully fully paid up in the company under L.F. No. ........ Details of the Equity Shares being given hereunder: Sl. No. Certificate No. Dist. No No. of Shares From .….... to..... I, hereby submit the following documents for transfer of 2,500 Equity Shares in my name: 1. Copy of Transfer Deed. 2. Copy of PAN. 3. Original share certificates. 4. Specimen signatures of mine. Kindly consider and arrange for transfer of the above said shares in my favour as earliest and oblige. Thanking you. Yours faithfully
20 September 2013
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.
20 September 2013
Specimen Board Resolution For approval of share transmission:
RESOLVED THAT the application(s) as described in the Share Transfer Register being Transmission No. ..….. to ….. for the transfer of Equity/Preference Shares of the company be and are hereby approved and the persons mentioned in the column 'Transferees' in the share Transfer Register be registered members of the company in the place of the respective deceased shareholders.
CAclubindia
