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Who will inherit the shares?
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27-Aug-13 06:43PM
At the time of opening a Demat account for trading in shares, you should be ensure to give the details of nominee to whom shares will be transferred in case of account holder death. His/her heir not entitled to get the shares transferred into their names if not mentioned as nominee the shares will go to those nominee whom details updated in the Demat account. This is a significant ruling, wherein the provisions of the Companies Act override the legality of a will. As per Section 109A of the Companies Act, the nominee legally inherits the shares after the death of the original shareholder, even if the latter has named someone else in the will, you should name the nominee in the will as well soas to avoid the confusion.
If no nominee has been named, the legal heirs will have to file an application, along with requiste documents, if they want to claim the investment.
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