(i) In the event of the death of any member of the successor company, the following persons are deemed to be the owners of the shares:
1. In case of that member being a joint shareholder, the remaining surviving shareholder and
2. In the case of that member being a sole shareholder, his legal heirs.
(ii) Production of evidence to prove heirs – In the event of the death of a member of the company, insolvency, the legal representative shall produce the necessary proofs to prove his heir.
(iii) To become a holder of shares or to transfer such shares by heir – The legitimate heir may get those shares registered in his own name or may transfer the shares.
(iv) Application of all rules and restrictions related to transfer of shares – If the legal heir of the shares wants to transfer such shares, then all the rules and restrictions related to the transfer of shares will be applicable to him.
(v) Rights of legal heirs – A legal heir shall, as a result of transfer of shares, receive dividends and other benefits in the same manner as if he were a registered shareholder of the company.
(vi) 30 days to decide – The legal heir shall, on receipt of notice from the company, inform the company within 30 days that he will get the shares registered in his own name or transfer them. Till such notice is complied with, the company may withhold the amount of dividends and bonus etc. payable on such shares.
Transfer of shares received by handing over of shares If a person receives shares as a result of handing over of shares, he can transfer these shares to others.