Transmission of shares is the result of operation of Law and it takes place only on the death, insolvency or lunacy of the share holder.
Generally the legal heirs of the deceased member can apply for transmission but in case of joint holding the survivors can get the shares transmitted in their names by production of the death certificate of the deceased holder of shares. In other words in case of joint holding, the survivor or survivors shall only be entitled for registration and the legal heir of the deceased member shall have no right or claims.
Execution of transfer deed not required in case of transmission of shares. Intimation/application of Transmission accompanied with relevant documents would be enough for valid transmission request.
In the case of a transmission of shares, shares continue to be subject to the original liabilities, and if there was any lien on the shares for any sums due, the lien would subsist.
Since the transmission is by operation of law, payment of consideration or payment of stamp duty would not be required on instruments for transmission.
If a member of a company dies and he leaves after him a will or letter of administration then the survivors shall get a copy of ‘will’ certified under the seal of a Court of competent jurisdiction. The certified copy of the will is called a ‘probate’
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