intestacy

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Written by Col Stewart

Tuesday, 14 July 2009

Husband and wife hold shares in a Ltd Co, 99 to H and 1 to W.  The husband dies intestate leaving two sons of a former marriage.  The intestacy rules provide for half of the estate residue to go to the sons.  However, they want half of the assets of the company (its freehold and cash) but I think they are only entitled to ownership of half of the deceased's shares.  This leaves the wife as the majority shareholder.  Does anyone have any thoughts, or experience of this situation? Add as favourites (128) | Quote this on your site | Views: 7642   Comments (1) 1. Written by ndhart, on 28-07-2009 12:56 In principle you are right - the sons inherit the shares not the assets. Without a 75% majority vote they can't force a winding up. However, assuming the widow's statutory legacy has been taken up elsewhere, she has only a life interest in the 49.5% shares. Even if she is the trustee of those shares, she must consider the interests of the reversioners in how she votes.     NB: If the company was formed during her marriage she may be able to claim a beneficial interest in her husband's 99 shares as of right, however, and that would change the dynamic. Report Only registered users can write comments. Please login or register. Powered by AkoComment Tweaked Special Edition v.1.4.6 AkoComment © Copyright 2004 by Arthur Konze - www.mamboportal.com All right reserved

 

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