Transmission of shares
Raja Rajeswari S
(Querist) 04 November 2009
This query is : Resolved
Dear members,
A private limited co. X formed on 1997, is to be currently undertaken by a another private co.
One of the sharehloder of the X co. expired during the year, 1999 and his legal heirs did not claim for transmission of shares in their name immediately after his death.
Now the one of the legal heir wants the shares transferred in his name. Can he apply to the company for the transmission in his name now (after 10 years)?
Will the company refuse on any grounds?
Can the co. transfer those shares in the name of the expired person to the new co. ?
regards
Raj Kumar Makkad
(Expert) 04 November 2009
Yes. The law of inheritance is not based upon any time limit. If a shareholder has expired definitely his legal heirs are entitled for the transfer.
A V Vishal
(Expert) 04 November 2009
Rajeswari
You are stating as one of the legal heir, how many heirs are there? All the heirs should relinquish their right in respect of the shares in favour of the one who has put up the claim. The company should take adaequate care in such matters involving succession matters. In best interests of the company and to avoid legal complications a succession certificate from a court of competent jurisdiction along with relinguishment letters from other LR's and a indemnity bond should be obtained.
Arul Kumar
(Expert) 05 November 2009
I Agree with Mr. A.V. Vishal.
