+- Accountancy Forum (https://www.accountancy.com.pk/forum)
+-- Forum: The Profession (https://www.accountancy.com.pk/forum/forum-the-profession)
+--- Forum: Accounting and Audit (https://www.accountancy.com.pk/forum/forum-accounting-and-audit)
+--- Thread: Transmission of shares to Nominee (/thread-transmission-of-shares-to-nominee)
Transmission of shares to Nominee - Star - 10-09-2009
Dears,
If a person has nominated two nominees during its life by mistake or otherwise for a bank account and shares held in CDC account then what would be the legal consequances of death of that person.
Is the nomination process is in accordance with the conjunctions of ISLAM if a person nominates his father or brother as his nominees instead of his children?
Transmission of shares is discussed in Section 79,80,81 and CDC Act, 1997.
Please state what the legal documentation would be required for a company to transmit shares of deceased member.
Regards,
*
- hshamsi - 10-09-2009
@ above
for shares held in CDC accounts, the nominations is on the basis of %age specified by the person nominating them. nominees mst be family members as defined in Co Ord 1984, the ref to ord is as under
80. Transfer to nominee of a deceased member.
(1) Notwithstanding anything contained in any other law for the time being in force or in any disposition by a member of a company of his interest represented by the shares held by him as a member of the company, a person may on acquiring interest in a company as member, represented by shares, at any time after acquisition of such interest deposit with the company a nomination conferring on one or more persons the right to acquire the interest in the shares therein specified in the event of his death
Provided that, where a member nominates more than one person, he shall specify in the nomination the extent of right conferred upon each of the nominees, so however that the number of shares therein specified are possible of ascertainment in whole numbers.
(2) Where any nomination, duly made and deposited with the company as aforesaid, purports to confer upon any person the right to receive the whole or any divisible part of the interest therein mentioned, the said person shall, on the death of the member, become entitled, to the exclusion of all other persons, to become the holder of the shares or the part thereof, as the case may be, and on receipt of proof of the death of the member alongwith the relative scrips, the transmission of the said shares shall be registered in favour of the nominee to the extent of his interests unless
a. such nomination is at any time varied by another nomination made and deposited before the death of the member in like manner or expressly cancelled by notice in writing to the company; or
b. such nomination at any time becomes invalid by reason of the happening of some contingency specified therein;
and if the said person predeceases the member, the nomination shall, so far as it relates to the right conferred upon the said person, become void and of no effect
Provided that where provision has been duly made in the nomination conferring upon some other person such right in the stead of the person deceased, such right shall, upon the decease as aforesaid of the said person, pass to such other person.
(3) The person to be nominated as aforesaid shall not be a person other than the following relatives of the member, namely, a spouse, father, mother, brother, sister and son or daughter, including a step or adopted child.
(4) The nomination as aforesaid shall in no way prejudice the right of the member making the nomination to transfer, dispose of or otherwise deal in the shares owned by him during his lifetime and shall have effect in respect of the shares owned by the said member on the day of his death.
legal documentation includes, proof of death / certificate , certificate conferring right upon nominee of the nomination, etc
regards.