When a shareholder dies, who inherits the shares and who exercises the voting rights?
Under Article 90 of the new Company Law, upon the death of a natural person shareholder the lawful heirs may inherit shareholder status unless the articles of association provide otherwise. Where heirs are minors or there are several heirs, voting rights are usually exercised by a legal representative or a representative chosen by the co-owners, with dividends and exit resolved by agreement or litigation. Setting out voting rules for inheritance in the articles in advance is advisable.
