19 January 2011
a member shall be deemed to have a “substantial interest’ in a concern: (a) In a case where the concern is a company, if its shares (not being shares entitled to a fixed rate of dividend whether with or without a further right to participate in profit) carrying not less than twenty percent of voting power at any time, during the relevant years are owned beneficially by such member or by any one or more of the following persons or partly by such member and partly by one or more of the following persons: (i) one or more relatives of the member: (ii) one or more partners and/or their relative, (iii) any concern in which any of the persons referred to above has a substantial interest; (b) In the case of any other concern, if such member is entitled or the other persons referred to above or such member and one or more of the other persons referred to above or persons of such number and / or are more sections of such persons are entitled in the aggregate, at any time during the relevant years not less than twenty per cent of the profits of such concern. Explanation - (a)for Clause (4) of part I of the First Schedule to the, read with Appendix 17 mean the year/period which the report/certificate relates and the year/period during which the said report/certificate is signed.
CAclubindia
