A shareholder of a purely private company has died. There is no nominee recorded in the Register of Members of the company. The deceased shareholder has wife and two sons. If he was having 100 shares, how the transmission will take place.
Will it be distributed equally to 3 individuals. Or only to wife. There is no Will.
Regards,
if there is no nominee then we have to check his will that whether there is any thing specified about distribution of shares or other wise it might become an offence(I also unable to answere because i also dont know where there is any case law in this regard)
The legal heir's or the legal representative's of such securities shall make an application to the company to transmit the shares lying in the account of the deceased to the account of the legal heir’s or legal representatives. That means if all the legal heir's of the deceased member makes application to the company, then shares will be transmitted to them equally.
Correct me if i am wrong.
CAclubindia
