What is the Transmission of Shares?
- Home
- What is the Transmission of Shares?
What is the Transmission of Shares?
Transmission of shares refers to the transfer of ownership of shares from a deceased shareholder to their legal heirs or nominees. Unlike a regular transfer of shares, which occurs during the lifetime of the shareholder, transmission is triggered by the death or incapacity of the shareholder. This process ensures that the rightful heirs or nominees inherit the shares according to the applicable inheritance laws.
Types of Legal Documents Involved in Share Transmission
- Probate of Will: When the deceased has left a will, the executor must obtain probate from the court to transfer the shares.
- Succession Certificate: Issued when the deceased has not left a will, it helps establish the legal heirs’ rights to the shares.
- Letter of Administration (LOA): Issued when there is no will, granting authority to a person to manage the estate of the deceased.
- Legal Heir Certificate/Surviving Member Certificate: A document certifying the legal heirs of the deceased shareholder.
Key Differences Between Transfer & Transmission of Shares
|
Feature
|
Transfer of Shares
|
Transmission of Shares
|
|---|---|---|
Documents Required for Transmission of Shares
The documents required for the transmission of shares depend on whether the deceased shareholder left a will (testate) or died intestate (without a will). Common documents include:
- Death Certificate: Official document certifying the death of the shareholder.
- Probate of Will or Succession Certificate: Legal documents proving the right to inherit.
- Share Certificates: Original share certificates held by the deceased.
- PAN Card and Address Proof of Legal Heirs: Identification documents of the heirs.
- Transmission Request Form: A form provided by the company to initiate the transmission process.
- Signature of Successor: Specimen signature of the legal heir or successor.
Scenarios Where Share Transmission is Necessary
- Death of a Shareholder: The most common reason for transmission is the death of the shareholder, requiring the transfer of shares to the legal heirs or nominees.
- Bankruptcy of a Shareholder: If a shareholder becomes bankrupt, the shares may need to be transferred to creditors.
- Mental Incapacity: In cases where a shareholder is mentally incapacitated, shares may need to be transmitted to a legal guardian or trustee.
How Seriate Capital Helps with Share Transmission
At Seriate Capital, we provide expert assistance in the transmission of shares, guiding you through the legal complexities involved. Here’s how we can help:
- Understanding the Legal Framework: Our legal professionals analyze the jurisdiction and laws governing your case.
- Family Tree Analysis: We assess the family tree and inheritance laws to determine the rightful heirs.
- Document Preparation: We help prepare the necessary documents, including probate, succession certificates, or letters of administration.
- Communication with Companies: We liaise with the companies or RTAs (Registrar and Transfer Agents) to obtain the required letters and follow the proper procedure for share transmission.
- Efficient Process Management: We compile a complete list of investments and work with the court to obtain a comprehensive order for the transmission process.
Transmission of Shares: The Complete Process
- Death of Shareholder: Initiate the transmission process by providing the death certificate and legal documents proving the heir’s rights.
- Obtain Legal Documents: Depending on whether the deceased had a will, obtain the necessary legal documents (Probate of Will, Succession Certificate, etc.).
- Submit Request: Submit the transmission request form along with the required documents to the company or RTA.
- Company’s Verification: The company verifies the documents and updates the shareholder records.
- Transfer of Shares: Once verified, the shares are transferred to the legal heirs or nominees.
Challenges in Share Transmission
Managing share transmission can be complex, especially in cases of:
- Multiple Shareholdings in Different Companies: Each company may have different procedures and documentation requirements, making the process time-consuming.
- Joint Shareholding: If shares are jointly held, the transmission process may involve deleting the name of the deceased shareholder and updating the records for the surviving holder.
Unlock Your Wealth
If you believe you are entitled to unclaimed dividends or shares, don’t wait any longer. Contact us to start the process of recovering your funds. Seriate Capital’s team of experts is here to guide you through every step of the IEPF claim refund process.
For more information or to start your claim, Contact Us Today!