Estate planning: Death certificate needed for transfer of shares
If for any reason the death has not been registered and if a period of one year has elapsed since the death has occurred, then the death will be registered only on the order of any executive magistrate and on payment of a late fee
How can one get shares transferred in the name of the first holder if the death certificate of the second joint holder is not available? The second holder is the mother of the first holder and the first holder is over 70 years of age. —T.V. Krishnamurthy
As per Section 56 (2) of the Companies Act, 2013, a company shall register a transmission on receipt of an intimation of transmission of any right to securities by operation of law from any person to whom such right has been transmitted.
The articles of association of the company will usually specify the documents which the company will require for the purpose of effecting the recordal of the transmission. The company will generally require some proof of the death of the joint holder before proceeding to record the transmission of the security which, in the ordinary course, would be the “death certificate” of the deceased member.
You may note that it is possible to obtain an extract of the register in which the death has been recorded by the registrar under Section 12 of the Registration of Births and Deaths Act,1969. However, if for any reason the death has not been registered with the registrar of births and deaths and if a period of one year has elapsed since the death has occurred, then the death will be registered only on the order of any executive magistrate and on payment of a late fee. In case of Maharashtra, a late fee of ₹5 has to be paid under the Registration of Births and Deaths Rules, 1976.
You will need to check the process and procedure in the state where the joint holder was living at the time of her death. Assuming that you are unable to obtain the death certificate or extract from the register of births and deaths as evidence of the death of the deceased member, you should check with the concerned company what documents they require as an alternative to the death certificate, to enable them to record the transmission.
Marylou Bilawala is partner, Wadia Ghandy & Co. Advocates, Solicitors and Notaries. Queries and views at mintmoney@livemint.com
Catch all the Instant Personal Loan, Business Loan, Business News, Money news, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
MoreLess
First Published:3 Apr 2019, 08:30 AM IST
- Top Gainers
- Top Losers
- 52 Week High