TaxTMI 
TaxTMI 
Transmission of Shares and Debentures
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....ificates to effect transmission of Shares. In case of dematerialised holdings, the formalities for transmission of all securities can be completed by submitting the documents required by the Depository Participant. Scope This Standard applies to Transmission of Shares held by individual shareholders in physical mode. Definitions The following terms are used in this Standard with the meaning specified: "Act" means the Companies Act, 1956 or any statutory modification or re-enactment thereof. "Administrator" means a person appointed by competent authority to administer the estate of a deceased person when there is no Executor. "Articles" means the Articles of Association of a company. "Board" means the Board of Directors of a company and includes a committee constituted by the Board. "Depository Participant" means a person registered as such under the Securities and Exchange Board of India Act, 1992. "Executor" means a person to whom the execution of the last will of a deceased person is, by the appointment of the deceased, confided. "Heir" means any person who is entitled to succeed the property of a deceased under applicable laws. "Intestate" means the deceased had not....
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.... Transmission of other securities including fixed deposits would remain the same. To facilitate transmission of Shares in appropriate cases, the company may waive production of certain documents, such as Probate or Letter of Administration or Succession Certificate. However, in such cases, the company may insist on a suitable Indemnity and affidavit. Section 109 provides for transfer of the Shares by the Legal Representative of the deceased Member. Section 109A provides for nomination by an individual in respect of his Shares. Where a Nominee has been appointed, the Shares shall vest in the Nominee on the death of the Member. As per Section 109B, on death of the shareholder, the Nominee has the option to elect either to register himself as the holder of the Shares of the deceased or transfer the Shares to any other person. The transferees need not be the legal heirs of the deceased shareholder(s). Similar rights are available to a person becoming entitled to Shares consequent to the insolvency of a Member in cases of companies having provisions akin to Regulation 26 of Table A of Schedule I to the Act in their Articles. Nomination assumes significance in transmission. The com....
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....the Shares as per the Will within a period of 30 days. The Board may at its discretion waive the requirement of probating the Will on production of other satisfactory evidence about the genuineness of the Will. 1.4 Where a sole shareholder who has not appointed a Nominee, dies intestate, the company should on receipt of written request from the legal heir, accompanied by the certificate evidencing the death of the shareholder and the Succession Certificate or Letter of Administration, register the Shares in the name of the legal heir within a period of 30 days. In case the transmission is requested in favour of one or more but not all the legal heirs, the company may require a No Objection Certificate relinquishing their right on the said Shares or Deed of Relinquishment from other legal heir(s) for such transmission. 1.5 Where a sole shareholder who has not appointed a Nominee dies intestate, the company should on receipt of written request from the legal heir, accompanied by the certificate evidencing the death of the shareholder and the Succession Certificate or Letter of Administration together with duly executed transfer deed, register the Shares in the name of any other p....
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....videncing the death of the shareholder and the Succession Certificate or Letter of Administration, register the Shares in the name of the legal heir within a period of 30 days. 2.5 Where Shares were held in joint names and the last of the surviving shareholders died intestate without appointing a Nominee, the company should on receipt of written request from his legal heir accompanied by the certificate evidencing the death of the shareholder and the Succession Certificate or Letter of Administration, together with duly executed transfer deed, register the Shares in the name of any other person elected by him, within a period of 30 days. 2.6 Where Shares are held in joint names and all the shareholders die simultaneously and no Nominee has been appointed, but the first holder has left a Will, the company should on receipt of written request from the Executor or beneficiary named in the Will, accompanied by the certificate evidencing the death of the shareholders and the Probated Will, register the Shares in the names of those persons who are entitled to the Shares as per the Will within a period of 30 days. 2.7 Where Shares are held in joint names and all the shareholders die si....