OMTEX CLASSES: PROCEDURE FOR TRANSMISSION OF SHARES?

PROCEDURE FOR TRANSMISSION OF SHARES?



Meaning: -The legal representatives have to prove that he is the representative of the deceased, insolvent or insane member. In such case he can select to be member of the company or transfer the shares. In both the cases the procedure is different which is given below:

REGISTRATION AS MEMBER

If the legal representative decides to be the member of the company following are the steps.
1.       The legal representative sends a ‘Letter of Request’ to the company stating his status and requesting the company to register his name as the member of the company. He sends the letter along with the share certificate and succession certificate.
2.       The secretary, after receiving the letter, scrutinizes the documents.
3.       If the secretary is satisfied with the documents, he arranges the board meeting. In the board meeting a resolution is passed to regularize the transmission, the shares are then transmitted in the name of the legal representatives.
4.       Once the resolution is passed, the name of the original shareholder is cancelled from the Register of Members and the name of the legal representatives or beneficiary is entered in Register.
IN CASE OF TRANSFER:
If the legal representative does not want to hold the shares he want to transfer the shares the procedure is as follows
1.       The Legal representatives have to inform the company by sending the instrument of transfer along with the necessary share certificate.
2.       The transfer is then made according to the usual procedure of transfer.
The name of the transferee is entered in the Register of Members by removing the name of the original shareholder.