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

• Main Authors: Halim, Akmal Hidayah, Mohd Salim, Wan Noraini, Hassan, Halyani, Mohd Noor, Nor Azlina, Arshad, Azhani
• Format: Article
• Language: English
• Published: GATR Enterprise 2015
• Subjects: K Law (General)
• Online Access: http://repo.uum.edu.my/17928/1/GJBSSR%202015%20Nor%20Azlina.pdf; http://repo.uum.edu.my/17928/; http://www.gjbssr.org/
• Institution: Universiti Utara Malaysia

Objective – This paper aims to examine the extent of the personal representative‘s duties and liabilities in dealing with shares on the death of a shareholder. The paper also analyses the procedure to administer the shares and the available options to the estate beneficiaries with regard to their entitlements to the shares. Methodology/Technique – The discussion 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. Findings – The personal representative 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 offenses in cases where he wastes or converts the shares to his own personal use. As for estate beneficiaries, their rights to the shares are subject to the Memorandum and Articles of Association of each company. Novelty –This paper highlights the procedure to administer shares that constitute part of the deceased’s estate in Malaysia. Type of Paper: Conceptual