login-icon
mahindra-finance-logo
login-icon
  • English
  • Hindi
  • Bengali
  • Marathi
  • Telugu
  • Tamil
  • Gujarati
  • Kannada
  • Odia
  • Malayalam
|

What is the legal position of the nominee in case of death of the shareholders?

mahindra-finance-author

by Mahindra Finance

|

July 21, 2023

|

1 mins read

In case of shares held by sole holder, upon the death of the shareholder, the nominee, to the exclusion of any other legal heir/beneficiary, is the only person in whom the shares vest. In other words, in case of a valid nomination, the Company will not entertain any claim from legal heirs or beneficiaries and the shares will be transmitted only in favour of the Nominee.

In case the nomination is made by joint-holders, it will come into play only upon the death of all the joint holders. Therefore, if one of the joint shareholders dies, the shares will devolve on the surviving shareholders to the exclusion of the nominee. In this case, the surviving shareholders may make a fresh nomination if they so desire.

Related articles

Things to Consider While Availing a Commercial Vehicle Loan

A commercial vehicle loan is available to any individual or organization, which is planning to buy a commercial vehicle. These loans are often costlier compared to personal vehicles; hence, ...

KNOW MORE

June 29, 2023

car loan maximum tenure

How Does Car Loan Tenure Affect EMI Calculation?

If you plan to seek a car loan, determining your EMI is a crucial step to plan well. Among the various factors that determine your EMI, the tenure of your car loan or, in other words, car loan maximum...

KNOW MORE

February 22, 2024

Fixed Deposit Schemes in India

In order to generate maximum returns out of an investment, it is essential to find the ideal fixed deposit (FD) scheme. There are a number of factors, which need to be considered before applying for...

KNOW MORE

June 30, 2023