Company Registration in Pakistan and provisions regarding transfer of shares to nominee of deceased member
As per the provisions of companies ordinance, 1984 when a person acquires shares in a company, then he has the right at any time after such acquisition of shares in the company to submit a nomination with the company whereby he confer one or more persons the right to acquire the shares in the company in the event of his death.
Companies ordinance, 1984 further states that if such a nomination is filed with the company as mentioned above and at any time after deposit of such nomination the person who has submitted such nomination dies, then his nominee will be entitled to such shares in the company exclusive of any other person.
There are only two exceptions whereby the person in whose favor nomination was deposited is not entitled to such shares these are:
The person will not be entitled to any shares if such nomination is at any time canceled by another nomination filed with the company.
Secondly if some sort of contingency happens law explains the situation with the help of example that suppose the person in whose favor nomination was created predeceases the nominating person then such nomination to the extent of person who died becomes cancelled.
Another important thing about nomination mentioned in the law is that only spouse, father, mother, brother, sister and son or daughter can be the nominees.
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