Jayanti Dey (Practicing Company Secretary) (271 Points)
26 July 2013One of the shareholder of our company who is also a director in it has expired and his shares have been claimed by his sons who are also directors in the same company. In this case what should be the transfer procedure and what are the documents required to effect the transfer?
Ajay Mishra
(Company Secretary)
(74337 Points)
Replied 26 July 2013
Requirement of documents/evidence for transmission of shares
Where title of 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 evidence is sufficient:-
1. Certified copy of death certificate
2. Succession certificate
3. Probate
4. Specimen signature of the successor.
However the requirement of these certificate is not essential and depends on various circumstances of the case. Where the succession certificate has been granted in respect of shares, the company can not insist on the production of probate or letter of administration, the certificate affords full indemnity to company.{Thenappa Chettiar v. Indian Overseas Bank Ltd.(1943)}
Jayanti Dey
(Practicing Company Secretary)
(271 Points)
Replied 27 July 2013
The legal heirs should obtain a Succession Certificate or Letter of Administration with respect to the shares and a true copy of the same, duly attested by the Court Officer, or Notary should be sent to the company along with a request letter, transmission form, and all the share certificates in original, for transmission in their favour.
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