Shares held by deceased shareholders (Part 1)
Who Can Deal with a Deceased Shareholder's Shares?
- When a shareholder passes away
- The shares cannot automatically be transferred to the family
- The company will only recognise a:
- Legal Representative
Can the Next of Kin Take Over the Shares?
- No
- A Next of Kin only refers to a family relationship
- It does not give the legal authority to deal with the shares
Who Is Legally Authorised?
- With a Will：
- The Executor is authorised to administer the estate
- Upon obtaining a Grant of Probate
- Without a Will：
- A court-appointed Administrator is authorised to administer the estate
- Upon obtaining a Letter of Administration
What Documents Will the Company Accept?
- With a Will：
- Grant of Probate
- Without a Will：
- Letter of Administration
- Only after these legal documents are issued
- Can the Legal Representative deal with the shares
Why Can't the Family Handle the Shares Directly?
- The company can only act based on legal documents
- Even if the person is a spouse, child, or other family member
- The shares cannot be dealt with without the proper legal authority
Summary
- Next of Kin ≠ Legal Representative
- Only the Legal Representative is legally recognised to deal with a deceased shareholder's shares
- Grant of Probate or Letter of Administration is required
- Without the required legal documents, no one may deal with the shares