Share transmission is a process by which share ownership is transferred without a direct transfer. Typically occurring due to death, succession, inheritance, bankruptcy, or marriage, share transmission involves the inheritance or bequest of shares from a deceased shareholder to their heir or personal representative. To facilitate this process, the presentation of probate or letters of administration granted by the High Court is necessary, ensuring the legal and smooth transmission of shares.
Transmission of shares in the case of co-ownership before the shareholder’s death follows the survivorship principle, with the surviving co-owner inheriting the shares.
Required Documents for Share Transmission:
To effect the transfer of shares through transmission, the following documents must be submitted to the Companies Registry:
– Certified copy of the death certificate of the deceased shareholder
– Certified copy of the identification card or surrender form of the deceased shareholder
– Certified copy of the grant of letters of administration in the case of intestacy or grant of probate in the case of a valid will
– Certified copy of the Certificate of Confirmation of Grant from the High Court
– Certified copy of the identity card of the personal representative and/or administrator
– Certified copy of the identity card of the beneficiary
– Original share certificates of the relevant companies
– Duly filled transfer of shares form
Grant of Probate
Probate is the authorization granted to the executors named in the will, allowing them to administer the shares to the respective beneficiaries. The application for a grant of probate involves filing a petition (form 78) supported by an affidavit, attaching the original will, two copies, and the death certificate of the deceased. After advertising the application in the gazette, and in the absence of objections within 30 days, the court issues the Grant of Probate.
Grant of Letters of Administration
When a shareholder dies without leaving a written or oral will, the grant of letters of administration comes into play. While any person can apply, priority is given to beneficiaries in the order of consanguinity. The application process involves filing relevant documents, making payments, gazettement, and finally obtaining letters of administration. If no objections arise within 30 days after gazettement, the court issues the Grant of Letters of Administration.
Should you require share transmission services, please do not hesitate to contact us at email@example.com or call us on 0720021253 / +254 20 2249 100/11. We are here to assist you seamlessly through these changes.