When several heirs inherit capital shares in a company, there are often cases where the inherited capital shares become the joint property of all heirs.
After receiving the certificate of inheritance, the heirs must contact the company’s member of the board with a request to make changes to the register of participants. Based on the certificate of inheritance, the member of the board is obliged to make changes to the register of participants, entering data on the owners of the inherited capital shares, and submit it to the Register of Enterprises.
If it does not follow from the certificate of inheritance that the heirs have entered into an agreement on the division of the inheritance, voluntarily distributing the capital shares among themselves, then the member of the board does not distribute the shares among the co-heirs on his own initiative but indicates all the co-heirs as joint owners of the inherited shares.
The rights arising from the joint capital shares (in particular, the right to vote at a meeting of participants) can be exercised by joint owners only by appointing a joint representative.
In practice, this is a difficult task to implement, especially if there are contradictions or conflicts between the co-heirs.
This situation can be avoided if an agreement on the division of the inheritance is concluded in a timely manner with a notary, voluntarily distributing the shares of capital between the heirs.
If the co-heirs in the inheritance case have failed to agree on the voluntary division of the shares of capital, each of the co-owners has the right to subsequently demand through the court to withdraw from joint ownership (termination of joint ownership).
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