Procedure for transmission is as below :
(1) Information to the Company :
(A) Intimation about Death : (i) Legal successor of the shareholder has to inform the Company about the death of shareholder. (ii) First shareholder is deceased: In case of joint shareholdering, other shareholder/ shareholders have to inform the company and produce the death certificate.
(B) Intimation about Insolvency : When a shareholder is declared insolvent, the company has to be the informed by receiver appointed by court.
(C) Intimation Regarding Lunatics/Unsound Mind : Whenever a shareholder is declared a lunatic by court, his guardian or trustee is appointed by court. The guardian or trustee should inform the Company.
(2) Verification of Ownership Documents : Whenever a company is informed about death, insolvency, lunancy, all the legal documents and authenticity have to be verified by the Company.
(3) Notice issued by Company to the representative : If the company is satisfied with the documents, authority letter, verdict of the court received from the receiver/ trustee/ legal heirs, it issues a notice to such representatives.
(4) Resolution of Board of Directors : After receiving the reply of notice Board of Directors transfer the shares to the name of the legal representatives and pass a resolution. After passing such a resolution, necessary entry is made in the Share Transfer Register.
(5) To issue new Share Certificate and enter name in Register of Members : After the resolution of share transmission the new members name is entered into the Register of Members. The new shareholders (or representative) are informed to collect the new share Certificate.