Bequeath property to a pvt ltd company
Amrith Vizag
(Querist) 18 January 2015
This query is : Resolved
Dear Experts,
I'd like to know if a shareholder can bequeath some of his property to the "Private Limited Company"
Guest
(Expert) 18 January 2015
Better consult the CA Club of the same forum for a Practical and Professional advise from CAs.
Amrith Vizag
(Querist) 18 January 2015
Dear Experts,
I'd like to know if a shareholder can bequeath some of his property to the "Private Limited Company" for the benefit of the company; whilst clearly stating that the property so bequeathed to the company should not have any bearing on his shareholding in the company.
He is however bequeathing his shareholding to his family.
He also states in another clause that during the dissolution of the company, the shareholders will inherit the company property in the ratio of their shareholding.
Is this a legally valid proposition.
Btw, thank you for the wonderful blog.
Isaac Gabriel
(Expert) 18 January 2015
It is the sweet will of the owner to bequeth the property as he likes if there is no other share holders.
Amrith Vizag
(Querist) 19 January 2015
Thank you for the suggestions.
However the question remains unanswered as to whether a Private Limited Company can inherit a property through a WIL.
I would really appreciate your early advise.
Regards,
Amrith Raj
Anirudh
(Expert) 19 January 2015
What is the difficulty?
P. Venu
(Expert) 19 January 2015
In a will, a bequest infringing the rule against perpetuity would be void.
T. Kalaiselvan, Advocate
(Expert) 20 January 2015
If a property can be bequeathed to a trust or to an unknown person, what difference it makes while bequeathing the same to a private limited company. It is for the testator.
Amrith Vizag
(Querist) 21 January 2015
Hi experts,
Hope to hear a final say in the matter as I've got to incorporate your advise.
Kindly give reference to case studies or laws that support bequeathing property to a Private Limited Company.
I would really appreciate your timely advise.
Regards,
Amrith Raj
