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PROCEDURE AFTER MINOR SHAREHOLDERS BECOMES MAJOR

SWAPNIL B PATOLE (company secretary) (97 Points)

23 February 2011

In a Public Ltd. co. a minor share holder holds shares through his guardian i.e. Father.

Now he has attained the age of Maturity..

Now he wants to held shares in his name..

What is the Procedure or documentations required to transfer the shares in his name??????

Note: Shares certificate is in the name of the father...

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Shraddha Shukla (Corporate law Consultant) (346 Points)
Replied 23 February 2011

if the minor has attained age of majority ask for a notarised copy of birth certificate and a note from parent whose name appears as guardian, place the matter before the board and treat this as - transmission of shares.

you can eliminate the name of guardin and jsut state the name of person now eligible to become member due to attainment of majority.

no stamp duty & hence transmission.

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Shraddha Shukla (Corporate law Consultant) (346 Points)
Replied 23 February 2011

Originally posted by : SWAPNIL B PATOLE
	In a Public Ltd. co. a minor share holder holds shares through his guardian i.e. Father. Now he has attained the age of Maturity.. Now he wants to held shares in his name.. What is the Procedure or documentations required to transfer the shares in his name?????? Note: Shares certificate is in the name of the father...

Hope it clarifies follow the provisions:

procedure:

Requirement of documents/evidences 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 (Appendix 2) to the
company by a legal representative alongwith the following necessary evidences is
sufficient:—
(i) Certified copy of death certificate;
(ii) Succession certificate;
(iii) Probate;

iv) Specimen signature of the successor.

(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.
Right to dividend, rights shares and bonus shares to legal representative shall be kept in
abeyance

PROCEDURE RELATING TO TRANSMISSION OF SHARES
(i) Transmission is devaluation of title by operation of law.
(ii) No instrument of transfer (Transfer Deed) is necessary.
(iii) If there was any lien on the shares or any original liabilities, it would subsist even
after transmission.
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(iv) A simple application with certain documents such as death certificate, succession
certificate, probate, etc., depending upon various circumstances may be sufficient
for transmission.
(v) In case of joint holding, the survivor or survivors shall only be entitled for registration
and the legal heir of the deceased member shall have no right or claims.
(vi) Dividend declared before the death of the shareholder will be payable to legal
representative but dividend declared after the death of a member can be paid to
him only after registration of his name and till that period it has to be kept in
abeyance.
(vii) Succession certificate is not required when probate or letter of administration is
issued.
(viii) Once succession certificate is granted, it provides full indemnity to the company to
transmit the shares by operation of law.
(ix) In case of amalgamation, no instrument of transfer is required to be executed.
(x) In case of shares of a private company, if company refuses to register transmission,
notice of such intention within two months giving reasons must be sent by the
company to the person sending intimation.
(xi) Remedies provided under section 111 are no longer applicable on listed/unlisted
public companies.
(xii) New section 111A abrogates the right of the public company to refuse registration
of transfer/transmission of share and debenture on any grounds.
(xiii) The companies, after registration of transfer, may approach the Company Law
Board/Tribunal for an order of rectification in case the transfer is in contravention of
any of the provisions of the Companies Act, 1956 or any other Act.