What happens if a joint shareholder dies?

If a joint shareholder dies, his or her shares pass automatically to the remaining joint holder(s) rather than, as with any property not held jointly, pursuant to the deceased shareholders Will or the law of intestacy.

As with the death of any other shareholder, the company will need to see the joint holder’s death certificate (or an authenticated copy). The company’s register of members can then be updated to show the holding vesting in the name(s) of the surviving joint shareholder(s).

It’s also considered good practice for the company to:

• Cancel the existing share certificate and issuing a new one in the names of the surviving shareholder(s); and
• Where appropriate, obtain a new dividend mandate from the surviving joint shareholder(s).