Calculation of fee payable for transfer of shares from father (intestate)
Ramkumar
(Querist) 18 August 2013
This query is : Resolved
Our father has passed away intestate, without nominating any of us (two sons & wife)for the SHARES he owned
We have filed the required documents including death certificate and legal heir certificates with court and completed all the formalities associated. We both sons have legally authorized our mother to receive our father's shares.
Now there is a confusion over the Calculation of Fee payable for Transfer of Shares from Father (intestate)to my mother - IS IT BASED ON THE "FACE-VALUE" (or) based on the "MARKET-VALUE"
please guide us with suitable reference
Thanks
Raj Kumar Makkad
(Expert) 18 August 2013
After demise of your father, the properties left by your father shall devolve among you, your brother and mother in equal share and no amount is required to be incurred in securing transfer except the nominal transfer fee of the society (if any) but if you both brothers want your share relinquished in favour of your mother then get registered relinquishment deed, the charges over that deed are also very nominal.
Raj Kumar Makkad
(Expert) 18 August 2013
In Haryana, the charges over relinquishment deed are only Rs. 500/-.
Rajendra K Goyal
(Expert) 18 August 2013
What type of Shares, not clear. Share of Housing Society or Shares in some Company.
In case of Company, Affidevit on Stamp paper for applicable amount (In Haryana Rs.10/-), Indemnity Bond, Relinquish deed is required. No share Transfer fee / tickets are required. Some other formal documents also has to be submitted.
Ramkumar
(Querist) 18 August 2013
Raj sir - thanks for kind guidance - we both sons have given our NOC for the transfer of our father's shares to our mother's name.
We completed several formalities required by the court (including several sittings' with JUDGE and summons to stock broking company).
Statement provided by the Stock broking company states the TOTAL MARKET VALUE (about 4.5 lakh rupees) and the TOTAL FACE VALUE is rupees Forty thousand & 273 only.
Now the judge is refusing to sanction the transfer (after taking the proceedings for the past 8 months) saying that the market value mentioned by the broker is higher than the limit permitted under his jurisdiction.
Kindly clarify which of the value either FACE VALUE(or)MARKET VALUE should be taken into consideration for deciding courts jurisdiction and for calculating the 'court mount fee' to be paid for the transfer of said shares.
At present the judge (after consulting us)wants to transfer the case to the next higher court due to higher market value (which in my opinion can vary wildly according to the market fluctuation)
WE WILL BE GRATEFUL IF YOU CAN MENTION SOME REFERENCE IN THE LAW OR ANY PRECEDENCE IN THE COURT OF LAW IN INDIA
Ramkumar
(Querist) 18 August 2013
Dear Mr Goyal - company shares are all in DEMAT FORM of several companies
prabhakar singh
(Expert) 18 August 2013
Well there should not be any ambiguity in any mind about it that for purposes of valuation of pecuniary jurisdiction and payment of court fees,it would be the market closing price of the shares that quoted last on exchange they are listed for trade day before filing of petition of succession certificate and an official record of Quotes would be available even on the exchange site,NSE or BSE,and print out of the same shall serve.
Act Wisely but if valuation on which court is banking is lower than that i have suggested.
Although proper legal way of valuation is only one i have told.
Face Value may be of use for only those shares which are not listed and are not traded on any stock exchange.
Rajendra K Goyal
(Expert) 18 August 2013
If you have moved to the Registrar of the Company, these would have been transferred through simple procedure. In the court market value need to be considered.
ajay sethi
(Expert) 18 August 2013
agree with prabhakar singhji . valuation of shares is as per market value .
Ramkumar
(Querist) 18 August 2013
Thanks for all the experts for your kind advice.
My only grievance is this except the fault that our father has failed to nominate us - why there should be a charge based on the market value - EVEN IF IT IS BY MARKET VALUE - WHAT PERCENTAGE OF MARKET VALUE NEED TO BE PAID TO THE COURT.
It will be useful if we can be aware the aforementioned information (% as fee) and the fact of "which clause of the law this consideration of Market value" is coming under.
Thanks again
Ramkumar
Raj Kumar Makkad
(Expert) 18 August 2013
Even if your father had not made any nomination, you legal heirs are naturally in his inheritance and the compony cannot deny to transfer the sahres in the name of any one of you subject to NOC of other legal heirs.
I suggest to withdraw the suit on technical grounds and first avail the option.
Ramkumar
(Querist) 18 August 2013
Raj sir - i feel vindicated that we as rightful legal heirs can nominate one among us the inheritor for our father's share {with minimal charges)& probably by approaching the respective companies as an option (only problem is there about 61 companies each in small number of shares & we have to apply to each one of these companies individually)
Hope we will come out of this mess soon
Warm wishes
Ramkumar
Raj Kumar Makkad
(Expert) 18 August 2013
If yo are facing such problem then definitely you are required to pay stamp duty as per current market value of the shares.
