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Urgent: Whether we need any other legal requirement ?

Kalpesh Chauhan, (Tax Assistant (Accounting Technician CA FINAL CS PROF. PROG. B.Com)) (8311 Points)

23 June 2010

If a share holder of a Private Company is died and his shares, when transferred to his spouse, do we need

Any mandatory requirement under MCA21
Any special resolution or uploading
Any other procedure except normal transfer procedure.

And also please provide me detailed procedure for transfer of shares in the above mentioned case.

Thanks in advance.

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2 Replies

Ajay Kumar Mourya (C.A.) (37 Points)
Replied 23 June 2010

Dear Kalpesh,

In the above situation, it is the case of transmission of shares and not the case of transfer of shares.

There is no any mendetory requirement under MCA21
No require any Resolution
Execution of transfer deed is not required.

Simply, following procedure is required for transmission of shares:

A simple application 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.

Since the transmission is by operation of law, neither consideration for transfer nor
stamp duty is required on instruments for transmission.

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