Beneficial owner

This query is : Resolved

CMA Swati Agarwal (Querist)
Follow

17 September 2013 Dear All,

Please help me in the below mentioned query:-

There are 3 companies, viz A , B and C.
"A" was the holding company of "C" from beginning. Last year, shares were sold to "B". But some of the shares of "A" are still pledged with trustee.

At present Share holding pattern is
"A"- 25% shares, which are pledged
"B"- 75% shares

Who is/ are the beneficial owners and for how much 5 shares?

CMA Swati Agarwal

CMA Swati Agarwal (Querist)
Follow

03 October 2013 Kindly help

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
Follow

18 July 2024 In the given scenario involving companies A, B, and C, where A was initially the holding company of C and later sold shares to B, with some of A's shares still pledged, we need to determine the beneficial owners of C's shares based on the current shareholding pattern:

### Beneficial Owners:

1. **Company A:**
- Company A currently holds 25% of the shares of Company C.
- However, these shares are pledged with a trustee, which means they are held as collateral for some obligation, typically a loan or credit facility.

2. **Company B:**
- Company B holds 75% of the shares of Company C.
- Since there is no mention of these shares being pledged, Company B is the outright owner of these shares.

### Beneficial Ownership:

- **Company A:** Even though Company A holds 25% of the shares, these shares are pledged. Pledged shares are not freely transferable or available for voting until the pledge is released. The beneficial ownership of these pledged shares typically remains with the entity that pledged them (Company A), but the trustee holds legal title as security.

- **Company B:** Company B holds 75% of the shares outright and is therefore the beneficial owner of these shares.

### Conclusion:

Based on the information provided:

- Company A is the beneficial owner of 25% of the shares of Company C that are pledged with a trustee.
- Company B is the beneficial owner of 75% of the shares of Company C.

Beneficial ownership refers to the actual ownership rights and benefits associated with shares, which in this case, aligns with the ownership percentages held directly by each company after considering the pledge on Company A's shares.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now