Procedure for filing SH.13 for shareholder nomination

Section 72 of the Companies’ act 2013, has laid down a provision under which the shareholders can file in their nominations.

This way the nominee would have the right to claim and own the shares and debentures of the deceased shareholder.

Let’s take a look at what section 72(companies’ act 2013) states.

Section 72 (Companies Act, 2013)

Section 72-Power to nominate

1. Every holder of securities of a company may, at any time, nominate, in the prescribed manner, any person to whom his securities shall vest in the event of his death.
2. Where the securities of a company are held by more than one person jointly, the joint holders may together nominate, in the prescribed manner, any person to whom all the rights in the securities shall vest in the event of death of all the joint holders.
3. Notwithstanding anything contained in any other law for the time being in force or in any disposition, whether testamentary or otherwise, in respect of the securities of a company, where a nomination made in the prescribed manner purports to confer on any person the right to vest the securities of the company, the nominee shall, on the death of the holder of securities or, as the case may be, on the death of the joint holders, become entitled to all the rights in the securities, of the holder or, as the case may be, of all the joint holders, in relation to such securities, to the exclusion of all other persons, unless the nomination is varied or cancelled in the prescribed manner.
4. Where the nominee is a minor, it shall be lawful for the holder of the securities, making the nomination to appoint, in the prescribed manner, any person to become entitled to the securities of the company, in the event of the death of the nominee during his minority.

Process of filing form SH-13

According to section 72(companies act ,2013 ) and rule 19(1) of the Companies (Share Capital and Debentures) Rules 2014

• The shareholders shall submit a Nomination Form (Form SH. 13) properly filled and signed by all the shareholders as per format.
• Only one nominee can be nominated per folio. On receipt of the request for registration of nomination, the Share Transfer Agent will register the same by allotting a registration number.
• The duplicate copy of the nomination form will be given back to the shareholder(s), representing the registration number and the date of registration of nomination.

Who is a Nominee?

Any holder of securities of a company may, at any time, nominate, in Form No. SH.13, any person as his nominee in whom the securities shall vest in the event of his death.

Who can assign a Nominee?

Only individuals holding accounts either singly or jointly can make nomination. Non individuals including society, trust, body corporate, Karta of Hindu Undivided Family, holder of power of attorney cannot nominate.

Nominations by Joint Account Holders

Where the nomination is made in respect of the securities held by more than one person jointly, all joint holders shall together nominate in Form No.SH.13 any person as nominee.