Dealing with shares on a shareholder's death: the plight of the deceased's personal representative

Where a shareholder of a company dies, the right to his interest in the shares will pass to his estate beneficiaries. Nevertheless, before such process could take place, the shares would legally vest in the deceased shareholder’s personal representative via transmission of shares. Undeniably, the mo...

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Main Authors:	Halim, Akmal Hidayah, Mohd Salim, Wan Noraini, Hassan, Halyani, Mohd Noor , Nor Azlina, Arshad, Azhani
Format:	Conference or Workshop Item
Language:	English English
Published:	2014
Subjects:	K Law (General)
Online Access:	http://irep.iium.edu.my/41048/ http://irep.iium.edu.my/41048/1/akmal_abstract.pdf http://irep.iium.edu.my/41048/2/Akmal.pdf

id	iium-41048
recordtype	eprints
spelling	iium-410482015-04-06T03:30:17Z http://irep.iium.edu.my/41048/ Dealing with shares on a shareholder's death: the plight of the deceased's personal representative Halim, Akmal Hidayah Mohd Salim, Wan Noraini Hassan, Halyani Mohd Noor , Nor Azlina Arshad, Azhani K Law (General) Where a shareholder of a company dies, the right to his interest in the shares will pass to his estate beneficiaries. Nevertheless, before such process could take place, the shares would legally vest in the deceased shareholder’s personal representative via transmission of shares. Undeniably, the most serious impact affecting the estate beneficiaries is the fall in the current value of the shares between the death of the shareholder and the receipt by the estate beneficiaries. Hence, the personal representative is highly required to act expeditiously in order to minimize any loss in share value. This paper aims to examine the extent of the personal representative‘s duties in dealing with the shares prior to the estate distribution. This paper also seeks to analyze the liabilities of the personal representative together with the available options to the estate beneficiaries with regards to their entitlements to the shares. The study adopts the doctrinal analysis by examining the existing primary and secondary materials including statutory provisions as provided by the Probate and Administration Act 1959 and the Companies Act 1965, case law and other legal and non-legal literatures relating to the duties and liabilities of the personal representative in dealing with the deceased’s shares. It is found that the estate beneficiaries’ rights to the shares are restricted and subject to the Memorandum and Articles of Association of each company. As for the personal representative, he stands vulnerable to be sued for civil liability for the loss arising from his failure to promptly realize and convert the shares, or charged for criminal offences in cases where he wastes or converts the shares to his own personal use. 2014 Conference or Workshop Item PeerReviewed application/pdf en http://irep.iium.edu.my/41048/1/akmal_abstract.pdf application/pdf en http://irep.iium.edu.my/41048/2/Akmal.pdf Halim, Akmal Hidayah and Mohd Salim, Wan Noraini and Hassan, Halyani and Mohd Noor , Nor Azlina and Arshad, Azhani (2014) Dealing with shares on a shareholder's death: the plight of the deceased's personal representative. In: Global Conference on Business and Social Science (GBSS 2014), 15-15 December 2016, Kuala Lumpur.
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English
topic	K Law (General)
spellingShingle	K Law (General) Halim, Akmal Hidayah Mohd Salim, Wan Noraini Hassan, Halyani Mohd Noor , Nor Azlina Arshad, Azhani Dealing with shares on a shareholder's death: the plight of the deceased's personal representative
description	Where a shareholder of a company dies, the right to his interest in the shares will pass to his estate beneficiaries. Nevertheless, before such process could take place, the shares would legally vest in the deceased shareholder’s personal representative via transmission of shares. Undeniably, the most serious impact affecting the estate beneficiaries is the fall in the current value of the shares between the death of the shareholder and the receipt by the estate beneficiaries. Hence, the personal representative is highly required to act expeditiously in order to minimize any loss in share value. This paper aims to examine the extent of the personal representative‘s duties in dealing with the shares prior to the estate distribution. This paper also seeks to analyze the liabilities of the personal representative together with the available options to the estate beneficiaries with regards to their entitlements to the shares. The study adopts the doctrinal analysis by examining the existing primary and secondary materials including statutory provisions as provided by the Probate and Administration Act 1959 and the Companies Act 1965, case law and other legal and non-legal literatures relating to the duties and liabilities of the personal representative in dealing with the deceased’s shares. It is found that the estate beneficiaries’ rights to the shares are restricted and subject to the Memorandum and Articles of Association of each company. As for the personal representative, he stands vulnerable to be sued for civil liability for the loss arising from his failure to promptly realize and convert the shares, or charged for criminal offences in cases where he wastes or converts the shares to his own personal use.
format	Conference or Workshop Item
author	Halim, Akmal Hidayah Mohd Salim, Wan Noraini Hassan, Halyani Mohd Noor , Nor Azlina Arshad, Azhani
author_facet	Halim, Akmal Hidayah Mohd Salim, Wan Noraini Hassan, Halyani Mohd Noor , Nor Azlina Arshad, Azhani
author_sort	Halim, Akmal Hidayah
title	Dealing with shares on a shareholder's death: the plight of the deceased's personal representative
title_short	Dealing with shares on a shareholder's death: the plight of the deceased's personal representative
title_full	Dealing with shares on a shareholder's death: the plight of the deceased's personal representative
title_fullStr	Dealing with shares on a shareholder's death: the plight of the deceased's personal representative
title_full_unstemmed	Dealing with shares on a shareholder's death: the plight of the deceased's personal representative
title_sort	dealing with shares on a shareholder's death: the plight of the deceased's personal representative
publishDate	2014
url	http://irep.iium.edu.my/41048/ http://irep.iium.edu.my/41048/1/akmal_abstract.pdf http://irep.iium.edu.my/41048/2/Akmal.pdf
first_indexed	2023-09-18T20:58:48Z
last_indexed	2023-09-18T20:58:48Z
_version_	1777410483882557440

Dealing with shares on a shareholder's death: the plight of the deceased's personal representative

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