• Transmission of shares on the demise of a shareholder

My elder brother died at the age of 60 years leaving behind his wife. no children.He did not leave any will . He held share in companies in physical form of the total value of about 8 Lakhs in different 
companies including in one company a value of Rs 5.20 lakhs. HIs wife obtained LEGAL HEIR certificate from the Tahsildar office sgned by the EXECUTIVE MAGISTRATE. HOwever the company 
concerned insists on succession cerificate or LETTER OF ADMINISTRATION or Declaration of Rights by way of suit simplicitor. I would like to know
1. whether the LEGAL HEIR CERTIFICATE IS NOT ENOUGH
2.whether the company will transmit shares upon giving indemnity by an income tax payee
3.. what is the declaratio of rights by way of suit simplicitor
4..How much time and money aprox it costs to get succession certificate in CHENNAI .
Asked 7 years ago in Civil Law

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7 Answers

legal heir certificate is not sufficient

2) widow has to obtain succession certificate from district court

3) since value of share is Rs 5.20 lakhs in one company it would not transmit shares merely on indemnity bond executed by the widow

4) legal fees vary depending upon lawyer engaged by you

Ajay Sethi
Advocate, Mumbai
96748 Answers
7804 Consultations

1. Yes, the legal heirs certificate issued by Tehsildar in few states does not have legal sanctity and hence most of the banks and financial institutions do not reply upon it.

2. Whether to transit the share on the basis of indemnity is purely the discretion of the company and you can not force on this.

3.Hence it is best solution to apply for succession certificate and to have it as the same will conclusively remove all doubts regarding the legal heirs of your brother.

4. Do note that filing of any declaratory suit is not remedy here. Succession certificate is most cost effective and expeditious way to establish right of legal heir of the deceased.

Act accordingly.

Devajyoti Barman
Advocate, Kolkata
23187 Answers
510 Consultations

widow has to file declaratory suit that she is the absolute owner of shares on demise of her husband

Ajay Sethi
Advocate, Mumbai
96748 Answers
7804 Consultations

1. Shell need to obtain a Succession Certificate, the Legal Heirship certificate is insufficient to inherit share holding of her demised husband.

2. Yes.

3. No need to go for it. Rather file proceedings for obtaining succession certificate.

4. Around 6 months. Fee will vary from lawyer to Lawyer.

Vibhanshu Srivastava
Advocate, Lucknow
9659 Answers
307 Consultations

Hi, you can obtain a succession certificate from court by filing a petition .. It take generally 1-2 months to obtain the certificate .. The cost cannot be told as advocates charge thier legal fee differently .. However it would not be much , it's a simple process , nothing complicated ..

Hemant Chaudhary
Advocate, Gurgaon
4630 Answers
67 Consultations

1. The legal heirship certificate will not be applicable to the movable properties of the deceased.

A succession certificate or letter of administration by an order of court would be the perfect document to claim the amount to the credit of the deceased by the successors in interest.

2. This is company's discretion based on its own policy for disbursement of death claim to the successors of the deceased.

You can ask the company itself directly ab out it becasue ther is no law to force the company to accept your this proposal.

3 Any person entitled to any legal character or to any right as to any property, may institute a suit against any person denying, or interested in denying, his title to such character or right, and the Court may in its discretion make therein a declaration that he is so entitled, and the plaintiff need not in such suit ask for any relief.

Provided that no Court shall make any declaration where the plaintiff, being able to seek further relief than a mere declaration of title, omits to do so.

4. If there are no respondents, then the succession OP should be decided within the span of three months, depending on the burden of cases in the concerned court.

The lawyer fee may be enquired from the lawyer likely to engage, there is an additional fee called stamp duty at the rate of 3% to the value of the property/shares.

T Kalaiselvan
Advocate, Vellore
86950 Answers
2334 Consultations

Please tell me what is the DECLARATION OF RIGHTS BY WAY OF SUIT SIMPLICITOR

Chapter VI of the Specific Relief Act 1963 provides for Declaratory Decrees under section 34 of the Act.

By way of this simplicitor suit the ownership and declaration regarding the title of the property of the deceased is to be declared by court by the plaintiff filing a suit for this purpose.

Thus this is nothing but a suit for declaring the title tothe proprieties left behind by the deceased as successor in interest.

T Kalaiselvan
Advocate, Vellore
86950 Answers
2334 Consultations

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