When a shareholder passes away, the question of how their equity can be transferred arises. This situation requires careful handling to ensure legal compliance and protect the rights of all parties involved. Firstly, check the company’s articles of association or any shareholder agreements that may outline specific procedures for such cases. Typically, the deceased shareholder’s shares can be inherited by their legal heirs, as stipulated by national inheritance laws. However, these shares might not automatically transfer; often, a notarized will or court approval is necessary. The heirs must then decide whether they wish to retain the shares or sell them. If sold, other shareholders may have preemptive rights to purchase the shares first, depending on the company’s regulations. Legal assistance is crucial during this process to navigate potential complexities, such as tax implications or disputes among heirs. Proper documentation and communication with the company are key to ensuring a smooth transition of ownership. 💼📜

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