shareholder bequeathing property to company
Amrith Vizag
(Querist) 08 April 2014
This query is : Resolved
Dear Experts,
I request your guidance on the following:
My friend & myself are the only two shareloders of a private limited company. He owns 20% share.
He has fallen gravely sick and has written a Will bequeathing property to our company - which will come into effect after his demise. It is intended that his family should inherit the 20% share.
Now, will him bequeathing property to the company affect his shareholding is the primary question.
There is nothing explicitly mentioned in the Will that share holding should not be affected. Please guide so that we can make ammends before its too late.
Thanking in anticipation,
Amrith Raj. A
R.V.RAO
(Expert) 09 April 2014
since he wants that his family should inherit the 20% shareholding in the company,the company should follow the process of transmission(transfer of shares after his death) of shares to his legal heirs.
his personal property going to the company is as per his will,whereas transmission of 20% share holding to his legal heirs,(in the absence of any specific instructions to the contrary), is a legal procedure under the company's act . both are two different issues.
Dr J C Vashista
(Expert) 09 April 2014
The deceased partner's share will transmit to his LRs as covenanted in the MOA and AOA of the partnership. However, it can be changed as per testament of will executed by the partner.
Devajyoti Barman
(Expert) 09 April 2014
Yes however reproduction of contents of Will would place us in more better position to advise correctly.
ajay sethi
(Expert) 09 April 2014
consult a local lawyer . will made by testator has to be seen
T. Kalaiselvan, Advocate 
(Expert) 09 April 2014
The testator is reportedly alive as on the date, it is better to make amends in the Will itself so that the future ambiguities/complications in this regard may be avoided. As suggested by Mr. Rao, that the Will and share in the company are two different issues, you can make he amends in the Will through the testator or in the MOA of partnership company in this regard accordingly.
