Section 109A of the Companies Act 1956 provides the facility of nomination for Shareholders. This facility is exclusively for individuals holding shares. In case of joint shareholding by individuals, nomination will be effective only in the event of the death of all joint shareholders. Shareholders, especially those who are holding shares in single name, are advised to avail of the same by submission of prescribed Form 2B to the Company's RTA.
However, if shares are held in Electronic form; request for nomination has to be lodged with the concerned DP directly, in the format prescribed by the DP.
Individuals holding shares either in single name or joint names can appoint a nominee. In case of joint holding, joint holders together have to appoint the nominee. Only an individual can appoint the nominee. A trust, Society, Body Corporate, Partnership Firm, Karta of HUF or a power of attorney holder cannot appoint a Nominee. Minors can, however, be appointed as a nominee.