A shrewd senior level employee in a major industrial house invested in shares largely through IPO or first issue as it was called n 1980’s and 1990’s. These investments turned into sizeable value today.
As was the regular feature those days, he apparently applied in multiple names = In his own name, in his wife’s name, jointly in his name and in son’s name.
There were three such folios of a blue chip company whose value has crossed Rs 100 lacs (All three folios put together). All share certificates were lost.
Original investor died. His son has also died and the mother is alive. There is also another daughter.
Both the bereavements were intestate (without leaving a will).
Father predeceased the son.
It is a congenial family and there are no estate issues.
SOLUTION
One third of the shares were in the mother’s name. She was still receiving dividends. So there was no issue. It was a simple matter of claiming duplicate shares and it was done.
Another one-third of the share was in the name of the son. Here again, there is no problem. We have applied for succession certificate.
The third portion was in the name of father (first share holder) and son (second applicant)
Our argument that the father predeceased the son and hence he will be the sole owner was not accepted by the Registrar as well as the company.
Legal position is that in one half of the shares there will be three legal heirs (mother, daughter in law and the daughter) and in the other half there will be only two legal heirs (mother and daughter in law)
As a via media we revised the succession application in the name of the mother and made the daughter and daughter in law to give no objection to transfer the entire share in favour of mother and include both the share certificates.
This way, with just one application balance shares can be transferred in mother’s name. This is work in progress.
