Saturday, May 2, 2015

Cleaning out the junk - shares

When you have your home painted, all the junk stares you in the face.

In my case, this includes a dusty old plastic file, with paper shares of companies that are no longer traded.

Since I had converted all the family's shares to demat form in 2003, it is extremely unlikely that this paper is worth anything; nevertheless I google the first name of the company on the first bunch of shares that come to hand. This is Hada Steel products, and my father bought the sharesf from Shri G.R. Hada, the promoter, in 1976. 

(The shares had been allotted to Mr. Hada in 1971, with a first call of Rs. 2.50; he paid another Rs. 2.50 in May of 1972 and the balance Rs. 5 in November of the same year).

Mr. Google throws up a list of companies under liquidation* in Chandigarh. The commentary, dated July 2013 has this to say: "It is pertinent to note that the said list is updated only till 2008". 

And, I love this comment: "
 "apparently the Ministry is not in business thereafter". 

Further, "You will also notice that  considerable time has elapsed from the date of Liquidation of some of these companies but hardly any company has disbursed the Liquidation proceeds to the shareholders till date."

Hada was liquidated on the 14th of May 1987, liquidation proceedings were Rs. 1.96 cr. Of course we haven't seen 1 paisa.

Unfortunate as this as, and poorly though it reflects on the processes of the Ministry of Corporate Affairs, my wife will be happy with the outcome - junk the junk paper.


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