Section 89 of CA 2013 : Section 89: Declaration In Respect Of Beneficial Interest In Any Share

Explanation using Example

Imagine that John holds shares in XYZ Ltd., but he does so on behalf of his friend Mike, who is the actual beneficiary of the dividends and any increase in share value. According to Section 89 of the Companies Act, 2013:

• John must declare to XYZ Ltd. that he is not the beneficial owner of the shares, providing the details of Mike who actually has the beneficial interest.
• Mike must separately declare his beneficial interest in the shares to XYZ Ltd., indicating that the shares are registered in John's name.
• If Mike decides to transfer his beneficial i...

Login to access all pages and read more content.

To disable ads and read rest of the premium content, subscribe to KanoonGPT Pro.