THE CORPORATIONS LAW

CHAPTER 7 - SECURITIES

PART 7.13 - TITLE TO, AND TRANSFER OF, SECURITIES

Division 2 - Transfer of securities

SECTION 1091AA   TRANSMISSION OF SHARES ON DEATH (replaceable rule - see section 135)  

1091AA(1)  If shares not held jointly.  

If a shareholder who does not own shares jointly dies, the company will recognise only the personal representative of the deceased shareholder as being entitled to the deceased shareholder's interest in the shares.

1091AA(2)  [Personal representative]  

If the personal representative gives the directors the information they reasonably require to establish the representative's entitlement to be registered as holder of the shares:

(a)  the personal representative may:

(i) by giving a written and signed notice to the company, elect to be registered as the holder of the shares; or

(ii) by giving a completed transfer form to the company, transfer the shares to another person; and

(b)  the personal representative is entitled, whether or not registered as the holder of the shares, to the same rights as the deceased shareholder.

1091AA(3)  [Election]  

On receiving an election under subparagraph (2)(a)(i), the company must register the personal representative as the holder of the shares.

1091AA(4)  [Transfer rules]  

A transfer under subparagraph (2)(a)(ii) is subject to the same rules (for example, about entitlement to transfer and registration of transfers) as apply to transfers generally.

1091AA(5)  If shares held jointly  

If a shareholder who owns shares jointly dies, the company will recognise only the survivor as being entitled to the deceased shareholder's interest in the shares. The estate of the deceased shareholder is not released from any liability in respect of the shares.