Q. A customer maintaining a bank account in the name of company M/s ABC
Construction (proprietorship concern)had died. The High Court collected
deceased's funds lying in various accounts from different banks and
paid/distributed the same to the legal heirs through issuance of
government cheques. The funds lying in only one bank account could not
be reported to High Court hence still remains with the bank and based on
registered Power of Attorney given by all surviving legal heirs of
deceased to one brother for managing company affairs / bank accounts,
the Attorney holder approached the bank and asked to release all the
funds lying in the deceased's account by issuing cheque in favour of M/s
ABC Construction. Here bank refused to do so and advised the legal heir
/power of attorney holder to bring Court's Succession Certificate based
on which funds would be released by the bank. The question is that
whether funds of deceased lying in proprietorship concern (M/s ABC
Construction)bank account can not be released in company name based on
the said Power of attorney or Succession Certificate is must to obtain
funds of deceased from the bank?
Ans. I think the said power of attorney has to approach High Court again for getting the money as the previous accounts were encashed that way. Succession is for legal heirs of deceased's own property while companies accounts are not always inheritable. For more do consult me at legal-experts@live.com
Ans. I think the said power of attorney has to approach High Court again for getting the money as the previous accounts were encashed that way. Succession is for legal heirs of deceased's own property while companies accounts are not always inheritable. For more do consult me at legal-experts@live.com
No comments:
Post a Comment