How do I transfer shares of a deceased person ?

How do I transfer shares of a deceased person ?

Introduction

Section 109 of the Companies Act, 2016 applies if the right of shares is transmitted to a person by operation of law.

When the right of shares can be transmitted?…. The existing member is deceased or becomes bankrupt.

How to transmit?

1. Give notice to the company in writing requesting his/ her name to be registered as a shareholder together with a copy of the Death Certificate of the deceased.

2. Supported by any document

a) the will or

b) letters of administration

3. Register the (beneficiary) person as a shareholder with SSM within 60 days.

Question:

Can the company directors refuse to approve the transmission of shares to the beneficiary?

Refer to the Malaysia case law: Ng Chong Wee v Ng Chong Geng & Sons Sdn Bhd

The Court of Appeal referred to the English case of Moodie v W & J Shepherd (Bookbinders) Ltd where the House of Lords explained the distinction between transfer and transmission.

Such transmission shall not affect any power of a company to register a (beneficiary) person as a shareholder to whom the right to shares has been transmitted by operation of law.

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