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

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.

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Abstract

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.

Item Type: Conference or Workshop Item (Full Paper)
Additional Information: 3140/41048 (ISBN: 9789671314708)
Uncontrolled Keywords: Shareholder’s Death, Transmission of Shares, Estate Distribution, Personal Representative, Malaysian Law
Subjects: K Law > K Law (General)
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button): Ahmad Ibrahim Kulliyyah of Laws > Department of Legal Practice
Depositing User: Assistant Prof. Dr. Akmal Hidayah Halim
Date Deposited: 12 Mar 2015 16:22
Last Modified: 06 Apr 2015 11:30
URI: http://irep.iium.edu.my/id/eprint/41048

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