Meaning: -The legal representatives have to prove
that he is the representative of the deceased, insolvent or insane member. In
such case he can select to be member
of the company or transfer the
shares. In both the cases the procedure
is different which is given below:
REGISTRATION
AS MEMBER
If
the legal representative decides to be the member of the company following are
the steps.
1.
The legal representative sends a
‘Letter of Request’ to the company stating his status and requesting the
company to register his name as the member of the company. He sends the letter
along with the share certificate and succession certificate.
2.
The secretary, after receiving the
letter, scrutinizes the documents.
3.
If the secretary is satisfied with
the documents, he arranges the board meeting. In the board meeting a resolution
is passed to regularize the transmission, the shares are then transmitted in
the name of the legal representatives.
4.
Once the resolution is passed, the
name of the original shareholder is cancelled from the Register of Members and
the name of the legal representatives or beneficiary is entered in Register.
IN
CASE OF TRANSFER:
If
the legal representative does not want to hold the shares he want to transfer
the shares the procedure is as follows
1.
The Legal representatives have to inform the company
by sending the instrument of transfer along with the necessary share
certificate.
2.
The transfer is then made according to the usual
procedure of transfer.
The name of the transferee
is entered in the Register of Members by removing the name of the original
shareholder. 