jayesh 13 April 2015

One person company and succession law

Mr. A forms a One Person Company (OPC) as per the provisions of Companies Act, 2013 and appoints his friend Mr. B as his nominee to become the member of OPC in case of his death. On A's death Mr. B becomes the member.

Can the legal heirs of Mr. A have any claim on the assets/shares of the OPC against Mr. B under the provisions of Indian Succession Act or any other local law?

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3 Replies

Advocate Kappil Cchandna (Expert Bail & Criminal Defence Lawyer at Delhi Supreme Court of India) 13 April 2015

Sir, What kind of property is put into the company .... ? Was that self acquired property or ancestral property .... Warm Regards Kapil Chandna Adv 9899011450

N R Dash.. (Advocate) 15 April 2015

If such will or deed is executed, then Mr. B can take over the OPC. However, if any personal property that are used for the business of the OPC would be under the ownership of the legal heir only.

If no such deed is executed, the Share, property etc. would be under the ownership of the Legal heirs only.

Jatin Mittal (Corporate Lawyer) 15 April 2015

Hi Jayesh

As per the Companies Act, 2013, in the event of death of member, the nominee shall manage the affairs of the Company only till the time, the shares are not transferred to the legal heirs of the deceased. For any other clarification, you can write to me at mittaljets@gmail.com