Question

Eileen Murphy often care for elderly neighbor Thomas Keeney he paid her 25 per day for her help and once gave her a bank certificate of deposit worth 25000 she spent the money Murphy alleged that shortly before his death Kenny can he gave her a large block of showers in 3 corporations he called his broker intending to instruct him to transfer the shares to Murphy's name but the broker was ill and unavailable so Kenny told Murphy to write her name on the shares and keep them which she did two weeks later Kenny died when Murphy presened the shares to Kenny's broker to transfer ownership to her the broker refused because Kenny had never endorse the shares as Law requires that is sign them over to Murphy was Murphy and title to the 25,000 ? To the shares?

Answer 1

The share certificates must be endorsed before registering a share transfer. In absence of the endorsement, the share transfer is not considered valid. In this case, Keeney did not endorse the shares before transferring them to Murphy. After her death, endorsement becomes impossible as the shareholder has died and no share transfer can take place. The share transfer that Keeney did to Murphy remains invalid.

After Keeney’s death, the right of ownership of the shares get transferred to whoever inherits her legally.