INHERITANCE OF SHARES
Sec 56 of the Act on Companies, 2013
Basically, the rules and regulations for the transmission of shares are set out in the company's Articles of Association. Section 56 of the Companies Act , 2013, in addition to the Articles of Association, deals with the whole legal structure and process for the tran of shares.
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Transmission Papers for Shares
1. If the shares are in the Demat account, the survivor must send the following papers.
2. Request Type for Transmission(TRF)
3. Affidavit for the argument of the legitimate heir of the beneficial owner on 100/- stamp paper
4. Notarized copy of the certificate of death
5. Deed of reimbursement of 500/- compensating both depository and depository participants (DP)
6. NOC From constitutional heirs
7. Duly executed by all legitimate heirs of the deceased beneficial holders, family settlement deed
Note: If the value is greater than Rs 2 lacs, Depository Participants (DP) may request that more documents be submitted as below, other than the above documents.
1. Certificate of Succession
2. The Probated Will
3. Type of Surety
4. If the shares are in physical form, the Share Transfer Agent shall order the following documents to be submitted to the Share Transfer Procedure-
5. Request Type for Transmission(TRF)
6. Notarized copy of the certificate of death
7. Initial Certificates of Share
8. Certificate of Succession
9. Probate, ideally notarized, or letter
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Board Resolution on the forwarding of shares
CERTIFIED COPY OF THE RESOLUTIONS PASSED AT THE BOARD MEETING .................................................................................... PRIVATE LIMITED Kept ON ...................................... AT THE REGISTERED OFFICE OF THE Business AT————————————————AT 11.00 A.M AND Ended AT 11:30 A.M.
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TRANSMISSION OF SHARES OF THE COMPANY At the meeting of the Board of Directors, the Chairman addressed that the letter of request from Mr ................................................ has been duly received by the nominees of the existing shareholder Mr ......................................... Intimating the news if Mr. Death was the current shareholder ................................. In whose behalf ................. Equity shares of Rs .............. /- are recorded in each business. Furthermore, the chairman was told that the nominees had submitted the following documents to the Transmission Request Form (TRF)-
1. Initial Certificates of Share
2. Notarized copy of the certificate of death
3. A certified copy of the certificate of succession
4. Certified true copy of Prabate by the competent court, if any, will be
Unanimously Passed
RESOLVED THAT, pursuant to the provisions of Section 56 and other applicable provisions, if any, of the Companies Act 2013, (Act) and the rules laid down thereunder (including any legislative alteration or re-enactment thereof for the time being in force) and the request for the transfer of shares obtained together with the related documents, the transfer of Rs ......... /-each of the shares bearing Rs ......... /-
OTHER RESOLVED THAT Mr./Ms. (Name of the person) Director / Managing Director of the Company is and is hereby allowed to perform all actions and take all measures that may be required, reasonable or reasonable to give effect to the above resolution.
On behalf of and for
PRIVATE LIMITED ......................................................................
Director Director DIN: DIN:
Date: -Date:
Location: