What is Transmission of Shares?
The transmission of shares is the process of transferring the ownership of shares from a deceased shareholder to their legal heirs or beneficiaries. This typically happens when a shareholder dies, and the shares they owned are transferred to their rightful heirs.
What are the Legal documents needed for Transmission of shares?
1: Legal Heir Certificate (issued by the local SDM or Tehsil Office)
2: Succession Certificate (issued by the Court)
3: Probate of Will (issued by the Court)
4: Letter of Administration (issued by the Court)
Is the Probate of Will and Succession Certificate the same thing?
No, they are not the same. When a deceased person has left a Will, Probate is granted. However, if no Will is left, a Succession Certificate is issued. In the case of Probate, only the assets mentioned in the Will are transferred to the beneficiaries. On the other hand, a Succession Certificate allows the legal heir to claim all of the deceased's assets. According to the Indian Succession Act, 1925, a beneficiary under Probate can be an individual or an entity, whereas, in the case of a Succession Certificate, the beneficiary must be a legal heir.
How to get Legal Heir Certificate?
A Legal Heir Certificate is issued by the Revenue Department of the district where the shareholder passed away. In metropolitan cities, it is issued by the SDM office, while in non-metropolitan areas, it is issued by the Tehsil office. In certain regions, this certificate is also referred to as the Surviving Member Certificate.
How to get Succession certificate?
To obtain a Succession Certificate, a petition must be filed with the relevant Civil Court in the area where the deceased person last lived. This is necessary only when the deceased has not left a will. The applicant must prepare, verify, and sign the petition, then submit it to the district judge in the appropriate jurisdiction, along with the required court fees. The court will then summon the involved parties to verify the claim. Once the court confirms the authenticity of the claim, the Succession Certificate is granted.