{"id":420,"date":"2023-10-15T15:38:59","date_gmt":"2023-10-15T10:08:59","guid":{"rendered":"https:\/\/taxladdu.com\/?p=420"},"modified":"2023-10-27T23:02:15","modified_gmt":"2023-10-27T17:32:15","slug":"beneficial-interest-and-compliance-section-89-of-companies-act-2013","status":"publish","type":"post","link":"https:\/\/taxladdu.com\/index.php\/2023\/10\/15\/beneficial-interest-and-compliance-section-89-of-companies-act-2013\/","title":{"rendered":"Beneficial Interest and Compliance (Section 89 of Companies Act, 2013)"},"content":{"rendered":"

What is Beneficial Interest?<\/strong><\/p>\n

Beneficial Interest in a share includes, directly or indirectly, through any contract, arrangement or otherwise, the right or entitlement of a person alone or together with any other person to-<\/p>\n

(i) exercise or cause to be exercised any or all of the rights attached to such shares, or<\/p>\n

(ii) receive or participate in any dividend or other distribution in respect of such share.<\/p>\n

Who is beneficial owner?<\/strong><\/p>\n

Any person whose name is not entered in the register of members of a Company as the holder of shares in that Company but who hold the beneficial interest in such shares.<\/p>\n

Declaration by person not holding beneficial interest and holding beneficial interest.<\/strong><\/p>\n

    \n
  1. A person whose name is entered in the register of members but does not hold any beneficial interest in such shares shall file a declaration in formMGT-4 within a period of 30 days\u00a0from the date on which his name is entered in the register of members and in case of any change occurs, within 30 days of such changes.<\/li>\n<\/ol>\n

    2.A person whose name is not entered in the register of member but hold beneficial interest in the such shares shall make a declaration in form\u00a0MGT-5 within 30 days\u00a0after acquiring beneficial interest or in case of any change, within 30 days of such\u00a0 changes.<\/p>\n

    Duty of the Company.<\/strong><\/p>\n

    Where any declaration is received by the Company, it shall file a return in Form\u00a0MGT-6\u00a0with the Registrar\u00a0within 30 days\u00a0from the receipt of declaration.<\/p>\n

    Exceptions.<\/strong><\/p>\n

    –\u00a0\u00a0Section 89 is not applicable on Government Companies.<\/p>\n

    Modifications.<\/strong><\/p>\n

    For specified IFSC Public Companies and specified\u00a0IFSC Private Companies, return to be filed\u00a0within 60 days of receipt of declaration.<\/p>\n

    Penalty<\/strong><\/p>\n

    If any person fails to make a declaration as required under sub section (1), (2) & (3) without any reasonable cause, he shall be punishable with fine which may extend to\u00a0Rs 50,000\u00a0and in case of continues failure, fine may extend\u00a0 to\u00a0Rs 1,000\u00a0 for every day after the first during which such failure \u00a0continue.<\/p>\n

    If any Company fails to file the return before the expiry of time, the Company and every officer of the company who is in default shall be punishable with fine which shall not be less than\u00a0Rs 5,00\u00a0but which may extend to\u00a0Rs. 1,000 for every day\u00a0after the first during which the failure continue.<\/p>\n

    CS Pradeep Kumar Jha<\/p>\n

    jhashab32@gmail.com<\/p>\n","protected":false},"excerpt":{"rendered":"

    What is Beneficial Interest? Beneficial Interest in a share includes, directly or indirectly, through any contract, arrangement or otherwise, the right or entitlement of a person alone or together with any other person to- (i) exercise or cause to be exercised any or all of the rights attached to such shares, or (ii) receive or …<\/p>\n

    Beneficial Interest and Compliance (Section 89 of Companies Act, 2013)<\/span> Read More »<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","footnotes":""},"categories":[5],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/taxladdu.com\/index.php\/wp-json\/wp\/v2\/posts\/420"}],"collection":[{"href":"https:\/\/taxladdu.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/taxladdu.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/taxladdu.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/taxladdu.com\/index.php\/wp-json\/wp\/v2\/comments?post=420"}],"version-history":[{"count":2,"href":"https:\/\/taxladdu.com\/index.php\/wp-json\/wp\/v2\/posts\/420\/revisions"}],"predecessor-version":[{"id":1062,"href":"https:\/\/taxladdu.com\/index.php\/wp-json\/wp\/v2\/posts\/420\/revisions\/1062"}],"wp:attachment":[{"href":"https:\/\/taxladdu.com\/index.php\/wp-json\/wp\/v2\/media?parent=420"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/taxladdu.com\/index.php\/wp-json\/wp\/v2\/categories?post=420"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/taxladdu.com\/index.php\/wp-json\/wp\/v2\/tags?post=420"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}