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Q. Why do Public Companies want representatives of deceased Shareholder estates to obtain a Grant of Probate or a Transfer Indemnity Bond before they will allow shares to be transferred to the estate's beneficiaries.
A. Public Companies want to be sure that the Shareholder's "Last Will and Testament" is valid. By insisting that a Grant of Probate or Transfer Indemnity Bond is produced, they avoid the risks that they will, at a later date, be exposed to demands by other parties claiming that they hold a more valid claim on the assets of the estate and that the Shareholder's "Will" should not have been recognised.

Q. What is a Transfer Indemnity Bond and how can it be used by the estate of deceased Shareholders when seeking to transfer shares in Public Companies?
A. A Transfer Indemnity Bond is an irrevocable and unconditional guarantee issued by a financially sound institution which is willing to guarantee that the "Last Will and Testament" of a deceased Shareholder is indeed a valid document and should be recognised by the public company. This guarantee allows the shareholding to be transferred without the need to obtain a Grant of Probate, Letter of Administration or a Reseal of Probate.

Q. How easy is it to obtain a Transfer Indemnity Bond and what are some of the advantages of this option rather than obtaining a Grant of Probate?
A. It is extremely quick and easy to obtain a Transfer Indemnity Bond and can save a significant amount of time compared to obtaining a Grant of Probate. A Transfer Indemnity Bond can be obtained with or without the assistance of Solicitors. The cost of purchasing a Transfer Indemnity Bond usually compares favourably with the expenses associated with obtaining a Grant of Probate. A Transfer Indemnity Bond is widely recognised as a valid alternative by the vast majority of Australia's Publicly Listed Companies.

Q. Which Companies accept a Transfer Indemnity Bond in lieu of a Grant of Probate?
A. The vast majority of Australia's publicly listed Companies are happy to accept Transfer Indemnity Bonds. Transfer Indemnity Bonds have been approved, and the use of them endorsed, by the industry's peak body, the Securities Registrars Association of Australia Inc.

Q. Who is Australian Probate Bonds Underwriting Agency and on whose behalf do they issue Transfer Indemnity Bonds?
A. Australian Probate Bonds Underwriting Agency is a privately owned and operated specialist firm dealing exclusively in the area of Guarantees and Sureties. It holds an exclusive authority to issue these Bonds on behalf of QBE Insurance (Australia) Limited, a member of the QBE Insurance Group, which is one of the world's largest Insurers, it is a top 20 publicly listed Company and currently capitalised at more than $16,587,000,000 (as at Wednesday, 7th March 2013).

If you have a more specific question, or require a firm cost of purchasing a Transfer Indemnity Bond please contact us and we will respond with an answer or quotation as soon as possible (usually within 24 hours).