People often face issues with share transmission in the event of marriage, death, inheritance, bankruptcy, or insolvency. Without the help of a sound legal and financial firm, it may be impossible to recover such shares.
What is Share Transmission?
Share transmission means share transfer by Operation of Law. It allows the transfer of shares in the name of the legal heir after the death of an actual shareholder.
The legal heir may face challenges with share transmission due to reasons like –
- Any statutory reasons other than natural transfer
What are the possible problems that may arise during Share Transmission?
Share Transmission is a clumsy process that can take a toll on your daily life. Without adequate professional advice, you will fail to complete the share transmission process. Infiny Solutions offers the required assistance to their clients relating to share transmission.
Without Infiny Solutions as your professional adviser, you may face the following challenges –
Wrong Understanding of the Share Concepts
Most shareholders often mix up the concepts of ‘Transmission of Shares’ and ‘Transfer of Shares’. The Indian Companies Act successfully highlights the major difference between ‘Transmission of Shares’ and ‘Transfer of Shares’.
‘Transfer of Shares’ depends on the decision and act of the shareholders whereas ‘Transmission of Shares’ is a result of the operation of laws. Shares can be transmitted only by will or inheritance and not by sheer will. In contrast, ‘Transfer of Shares’ doesn’t always need any specific consideration.
Multiple Share Holdings in Various Companies
Shareholders often have multiple shareholdings in several companies. If you want to complete the share transmission process you need to provide the following documents to each such company or financial institution. You are also required to follow up with the various policies of such companies.
- Certified date certificate copy
- Probate of Will or Succession Certificate or Letters of Administration
- Specimen signature of the legal successor or successors
- Submission of request application for share transmission by the legal heirs, nominees, or their representatives
Infiny Solutions will ensure a hassle-free share transmission from each company without any complexities.
Jointly Held Securities
Another major issue faced by shareholders during the transmission of shares is if they are a joint holder in jointly held security. If you are one of the joint security holders of such shares, Infiny Solutions can assist you with the same.
In the case of jointly held securities, a sound legal and financial firm will assist you in the deletion of the name of the other shareholders. This can be done by operation of law if the other shareholder dies or it can be done if you are voluntarily seeking the transmission of shares.