Nomination

You may go thru : The Companies Act,1956

Under the companies Act,1956,nomination facility is available as per the provisions of Section 109A and 109B read with Section 58A(11) of the Companies Act,1956 to the holders of Shares, Debentures and Fixed deposits. The Prescribed Form No.2B has to be submitted by the Fixed Deposit holder/ Debenture holder/Shareholder.  Rule 5D prohibits that nominee can not be a Trust, Society, body corporate, Firm, Karta of HUF, power of attorney holder. In other words Nominee has to be an individual only. In case of joint holdings both the joint holders have to sign the nomination form. If the nomination is made by the Fixed Deposit holder/ Debenture holder/Shareholder, the nominee becomes entitled to all rights in shares and debentures as the case may be to the exclusion of all other persons. Nomination becomes effective on the death of the Fixed Deposit holder/ Debenture holder/shareholder. It may be noted that nomination in case of joint holdings will not be effective unless death of both join holders takes place. Articles of almost all companies provide that in case of death of first holder, joint holder is the only person recognized as having title and interest in the shares.

Section 109B gives an option to the nominee either to get registered as holder of Shares or Debentures or directly to transfer/sell the shares or debentures as the deceased could have made.

It is suggested that you should seek opinion in person from a lawyer handling such matters at your location and proceed under expert advice of your lawyer.

First place, you may ask your father to  apply for converting the share from physical form to demat form and after that he can make nomination in your name in the prescribed form, this will take care of all your questions.  However, it is pertinent that you have to open a demat account in your name so that in the event of sad demise of your father, his entire  shares can be transferred to your account directly without any problem of legal heirship or succession certificate etc.  Your sons or kins donot have any right in your father's self acquired intestate property (both immovable and movable). 

Thank you Adv. Kalaiselvan

So my wife will also not have stake my father's self acquired  property - is that correct?

Neither your wife nor your children can claim a right or share to the properties (movable or immovable) that belonged to your father and inherited by you.