Transmission of deceased shareholder's shares denied where legal heirship and valid succession proof were not established.

Transmission of a deceased shareholder's shares was refused because the petitioner did not establish valid legal heirship. The claim relied on a succession certificate, but the certificate from the Deputy Administrator General had been restrained and could not serve as subsisting proof. In the absence of a will or any other valid supporting document showing entitlement, the company was justified in declining transmission under its articles, which allowed transfer to legal heirs only on proof of the succession claim. Rectification of the register of members was therefore also not available, and the petition failed.

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Issues: Whether the petitioner was entitled to seek transmission of the deceased shareholder's shares in his favour and rectification of the register of members on the basis of the succession certificate produced.

Analysis: The petition was founded on a claim that the petitioner was the sole legal heir of the deceased shareholder and was entitled to transmission of the 150 equity shares under the company's articles. The Court noted that the certificate obtained from the Deputy Administrator General had been restrained by that authority, so the certificate could not be treated as subsisting evidence of legal heirship. In the absence of any will and without any valid supporting document establishing the petitioner's entitlement, the company was justified in declining transmission. The articles permitted transmission to legal heirs only upon proof of the relevant succession claim, which was not made out on the record.

Conclusion: The petitioner was not entitled to transmission of the shares or to rectification of the register, and the petition failed.

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