Ad Free CAclubindia and Daily Updates on your Mobile. Subscribe Now!

nomination

Aditi (Student) (389 Points)

03 June 2018

im case company / body corporate is a member of any company, can it nominate a person who sall in the event of its liquidation become.member of company .(in terms of section 72)?

Reply
Follow
Share

5 Replies

vaishali singh (trainee) (395 Points)
Replied 05 June 2018

Not very sure but nominee is the person who act on behalf of a deceased member or is a legal heir while company is distinct from its members constituted on on going principle .there is no legal succession.

Upgrade to CAclubindia Pro. Subscribe Now!

Aditi (Student) (389 Points)
Replied 05 June 2018

section 19 says that subsidiary com shall not either by itself or through its nominee hold shares...... what does it means nominee if subsidiary .?

vaishali singh (trainee) (395 Points)
Replied 05 June 2018

Section 19 i guess provisions aims at to maintain transparency between holding and their subsidiaries and only in exceptional cases subsidiary can hold shares of holding as its nominee.

P C Agrawal (Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad) (8229 Points)
Replied 05 June 2018

Provisions of Sec.72 are applicable only to natural persons and not companies which are artificial persons because death of natural person is uncertain and can happen at any moment. However, dissolution of a company is through legal process which after taking into account settlement of all assets and liabilites as per law. In case of merger all assets (including investment) and liabilities are transferred to the transferee company. Similarly in case of voluntary winding up liquidator will settle all accounts.

Again, nominee is just a trustee who holds the shares till such time legal heir files his claim.

1 Like