This guide is written for families in Malaysia who have just lost a loved one and now need to deal with shares held in that person’s name on Bursa Malaysia. It is based on the questions I get most often from clients going through this process for the first time.
First Steps for the Family
The very first thing to do is inform the deceased’s stockbroker or remisier. Do not wait until you have all the legal paperwork sorted out — call or email the broker early so the account can be flagged and protected.
Next, locate the CDS account or accounts. Many people hold shares with more than one broker, so check old statements, contract notes, or dividend payment slips for clues.
Do not log in to the deceased person’s apps or accounts. Rely on their statements and contract notes, and on the broker’s records. Bursa Malaysia Depository can disclose information about the deceased’s CDS account to family members who need it to apply for probate, letters of administration or a distribution order, and the family can ask for the CDS account to be suspended so nothing is moved in the meantime.
Gather these items before contacting the broker:
1. The death certificate.
2. The deceased’s identity card number and CDS account number, if known.
3. Your own identification and relationship to the deceased.
The broker will guide you on what happens next, but they cannot move any shares until legal authority over the estate is established. This is the part that trips up most families, because they assume the broker can simply transfer shares once a death certificate is shown. That is not the case.
Confirm Who Has Legal Authority Over the Estate
Shares cannot be transferred to beneficiaries just because a death certificate has been produced. Someone must first have legal authority to act on behalf of the estate.
If the deceased left a valid will, the executor named in the will applies for a grant of probate through the courts. If there was no will, a suitable person applies for letters of administration instead.
Some estates may qualify for the government’s small estate distribution process, which is handled through the Land Office. In other cases, Amanah Raya Berhad may be involved in administering the estate.
Which route applies depends on the size and nature of the estate, whether there is a will, and other factors specific to the family. I am not able to tell you which route applies to your situation — that decision should be confirmed with a lawyer or the relevant estate authority.
| Route | When It Generally Applies | Who Handles It |
|---|---|---|
| Grant of Probate | There is a valid will | Executor named in the will, via the courts |
| Letters of Administration | There is no will | Court-appointed administrator |
| Small Estate Distribution | Estate may qualify under the simplified process | Land Office |
| Amanah Raya Berhad | Certain estates without a will or where appointed | Amanah Raya Berhad |
Transmission of Shares: From the Deceased’s CDS Account to Beneficiaries
Once legal authority has been established, the stockbroker can begin the transmission of shares. In practice, this means moving shares out of the deceased’s CDS account and into each beneficiary’s own CDS account.
1. The person with legal authority submits the relevant grant or letters, along with the broker’s own transmission documents.
2. The broker verifies the beneficiaries named and the number of shares held.
3. Each beneficiary must have their own active CDS account to receive the shares — this is where families often get stuck.
4. The executor, administrator or beneficiary signs the transfer form in person before an officer of Bursa Malaysia Depository or the stockbroker (those living overseas can ask the broker for a waiver), and the shares are then transferred into each beneficiary’s account.
If a beneficiary does not already have a CDS account, one needs to be opened before their portion of shares can be transferred. This alone can add unnecessary back-and-forth if it is not sorted out early.
My advice to clients is to check with every beneficiary as soon as the legal authority documents are being prepared, not after, so the CDS account opening can run in parallel rather than causing a second delay later.
What Happens to Dividends and Corporate Actions in the Meantime
While the estate is being sorted out, the shares remain in the deceased’s CDS account and continue to be entitled to dividends, bonus issues, rights issues, and other corporate actions.
Dividends declared during this period are usually credited to the deceased’s linked bank account or held pending, depending on the company’s payment arrangements and the bank’s own procedures on frozen accounts.
Corporate actions that require a decision, such as electing for a rights issue, may need to be handled by whoever has legal authority over the estate at that time. If no one yet holds that authority, the broker will generally advise on default treatment where one is available.
This is another reason not to delay applying for probate or letters of administration — the longer it takes, the more corporate action entitlements may be sitting unresolved.
Bursa Malaysia sets out the official process on its page CDS Account of a Deceased Investor.
Common Delays and How to Avoid Them
Missing or incomplete documents are the single biggest cause of delay. Before submitting anything, check with the broker exactly what is required for your specific case.
Beneficiaries without a CDS account are the second most common holdup. Get this sorted while the legal paperwork is still being processed, not after.
Disputes among beneficiaries, even informal disagreements, can stall a transfer indefinitely. The broker cannot act as a mediator and will simply wait until the matter is resolved or a court decides.
Incorrect or outdated personal details on the CDS account, such as an old address or expired identification, can also cause the broker to bounce paperwork back for correction.
Why a Will and a CDS Account List Save Time
Having a valid will in place generally moves the process along faster than having no will at all, because it clearly names an executor and removes ambiguity over who should apply for authority.
Keeping a simple written list of all your CDS accounts, brokers, and approximate holdings is one of the most practical things you can do for your family. Many clients hold accounts opened decades ago that even their own spouse does not know about.
This list does not need to be complicated. A single page with broker names, account numbers, and rough share counts, kept somewhere your family can find it, is enough.
Common Mistakes to Avoid
1. Waiting for probate or letters of administration before telling the broker anything.
2. Assuming one CDS account is the only one — always check for accounts with other brokers.
3. Forgetting that every beneficiary needs their own CDS account before shares can be transferred.
4. Letting family disagreements delay the legal application itself.
5. Not asking the broker for a specific checklist relevant to your case before submitting documents.
Key Takeaways
- Inform the stockbroker as soon as possible after death, before sorting out legal paperwork.
- Shares can only be transferred once someone has legal authority over the estate — probate, letters of administration, or the applicable estate process.
- Every beneficiary needs their own CDS account before shares can be transmitted into it.
- Dividends and corporate actions continue to apply while the estate is unresolved, so delays have real cost.
- A will and a simple list of CDS accounts can spare your family significant time and stress later.
- This process varies by estate — always confirm the correct legal route with a lawyer or the relevant authority.
Frequently Asked Questions
How long does it take to claim shares of a deceased person in Malaysia?
There is no fixed timeframe, as it depends on how quickly legal authority over the estate is obtained and how complete the documents submitted to the broker are. Delays usually come from missing paperwork or beneficiaries who do not yet have a CDS account, not from the broker’s own processing.
What documents does the broker need to transfer shares to beneficiaries?
Typically the broker will need certified copies of the death certificate, proof of legal authority over the estate (a grant of probate, letters of administration, a distribution order for a small estate, or a direction letter from Amanah Raya Berhad), and identification for the person acting and each beneficiary. Exact requirements vary by broker, so it is best to check the current checklist with the stockbroker directly.
Can shares be transferred without going through probate or letters of administration?
No, the broker cannot move shares out of a deceased person’s CDS account until someone has recognised legal authority over the estate. Which specific route applies, including any simplified small estate process, should be confirmed with a lawyer or the relevant estate authority.
What happens if a beneficiary does not have a CDS account?
The beneficiary will need to open a CDS account before their portion of the shares can be transferred to them. It is worth doing this while the legal paperwork is still being processed so it does not add a separate delay later.
Do dividends still get paid while the estate is unresolved?
Yes, the shares in the deceased’s CDS account continue to be entitled to dividends and other corporate actions while the estate is being settled. Payment handling can depend on the linked bank account and the company’s own procedures, so it is worth checking with the broker on the specifics.
If your family is going through this process and you want someone to walk you through the CDS transfer step by step, feel free to reach out. I am Dexter Chia, a remisier at Malacca Securities Sdn Bhd, and you can WhatsApp me directly at +60169059789, or open an M+ Global account using invitation code UBZQ if you need a CDS account set up for a beneficiary.
Need Help With This?
If you are an M+ Online or M+ Global client and need help with this process, message me directly — I handle these requests for clients every week.
WhatsApp: +60169059789 | M+ Global Invitation Code: UBZQ
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your own research before making investment decisions.
Want to invest in Bursa Malaysia or US markets? Contact Dexter Chia, an AI Driven Remisier who has 2,200+ clients at Malacca Securities Sdn Bhd (M+ Online / M+ Global). M+ Global Invitation Code: UBZQ | WhatsApp: +60169059789 | Why Choose Dexter?
