Death of majority stock holder

[toncab]

Similar to a thread but in this case the majority stock holder (80%) dies with no specific will or instruction on who will inherit his shares.

There are some family members who hold some shares and one who actually works for the company and there are other non-relatives who also own shares of the company.

Does the inheritance code apply and does the director's 80% stake go to his wife and children or does the corporation have a say on how his shares get distributed?

Seeking enlightenment,
toncab

[tkessex]

Presumably you mean shareholder, rather than stock-holder?

In any case the shares of the deceased will pass to either their widow/widower, or their dependents (unless their will specifies otherwise).

[Ian J]

Originally Posted by tkessex

Presumably you mean shareholder, rather than stock-holder?

No he means stock holder as he's posting from the Phillipines and not UK

I think it may be wise to take advice from local lawyers as the rules and regulations over there could be very different to the UK where this forum is based.

[toncab]

Correct sir and very observant of you and your advice is good. But before talking to a lawyer some due diligence on my part and a little research won't hurt.

While local laws apply, corporate structures are, for the most part pretty much the same, as we tend to pattern ourselves after the American model. While there may be glaring differences the "spirit" of the law should be universal to some degree in protecting the gov't, the corporation and the investors interest and/or well being.

To clarify a point, the SEC (local version) requires at least 5 persons to incorporate a company. These would be the stock holders of the corporation.

I logged on to the local SEC but unfortunately could not find any related material hence my posting here.

Many thanks nonetheless for your inputs gentlemen, much appreciated.

Originally Posted by Ian J

No he means stock holder as he's posting from the Phillipines and not UK

I think it may be wise to take advice from local lawyers as the rules and regulations over there could be very different to the UK where this forum is based.