The Companies Act, 1956 has now recognized nomination. Brawn Pharmaceuticals Limited will be fully protected if it acts on the nomination. It is also necessary for Brawn Pharmaceuticals Limited to act on the nomination. The instruction given in the prescribed nomination form states that transfer of shares / debentures in favour of the nominee and repayment of the amount of deposits to the nominee shall be a valid discharge by a company against the legal heir.
Once a nomination is made, the same will qua Brawn Pharmaceuticals Limited, override all claims from the legal heirs under the succession certificate or from beneficiaries/executors under a Will executed by the deceased shareholder.