rajesh_rvp (Service) 11 May 2017
A & B were joint shareholders. They were holding equity shares in physical form. A died in 2007. B died in 2011. High Court determined C & D as successors of B because at the time of death of B, he was the sole shareholder (though on share certificate, name of A was not deleted). One of the companies raised objection and demanded succession certificate in the name of A also for transmission of shares to C & D. Please advise.
Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 ) 11 May 2017
If the head or a member of the family passes away, the next direct legal heir of the deceased such as the wife or husband or son or daughter or mother may apply for Succession Certificate on application for the purpose of transferring Electricity connection, House Tax, Telephone connection/Patta transfer, Bank Account, Filing of IT Returns, etc. If the person who died is a Government servant, legal heir certificate is issued for sanction of family pension, and for getting appointment on compassionate grounds. Legal Heir is also provided for various other reasons as-well.
Kumar Doab (FIN) 11 May 2017
Apparently: The stand of the company seems to be right.
rajesh_rvp (Service) 13 May 2017
1) Does the company have right to quetion order of HC i.e. succession certificate?
2) Is it not company's duty to proceed with transmission when one of the documentary requirements i.e. submission of succession certificate has been fulfilled?
Kumar Doab (FIN) 13 May 2017
If succession Certificate was required and submitted then submit rest of requisite docs.
If everything has been submitted then what is the issue!
rajesh_rvp (Service) 14 May 2017
All the required documents were submitted. Requirement of A's succession certificate was raised by Asst Manager (Shares) of the Company and not by their Registrar and Share Transfer Agent (RNT). RNT did not raise any objection. My query is (1) Does the company have right to quetion order of HC i.e. succession certificate?
Kumar Doab (FIN) 14 May 2017
Genericaly speaking: NO.
The regulator is SEBI and SEBI has framed rules on Transmission of Shares.
These are available on its web site.
Relate your matter.
Nitish Banka (lawyer) 09 July 2018
About Succession certificate
A succession certificate is granted by the court in order that legal heirs get a full authority to control the debts and securities of deceased father or mother, husband or wife. Now since after death of a person a legal heirs are the immediate persons who will get the movable assets of a deceased person. The process of succession certificate is a summary process to determine the authenticity of legal heirs.
About Application to get succession certificate.
In order to get the succession certificate an application under section 372 of Indian succession act is to be filed in the court of senior civil judge, jurisdiction is determined on the basis of where the decease resides or where his assets are situated.
Procedure
The civil judge will examine the application and on first date of hearing would pass following orders
->Publication in leading newspaper.
-> Order SDM of deceased residence to examine legal heirs.
-> order the bank where assets are situated to come up with all records.
Once these steps are cleared and there is no opposition and statements of all legal heirs are recorded the court would grant the succession certificate by furnishing indemnity bond an surety.
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