Legal n beneficial ownership

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CA Gyati Gupta (Querist)

12 January 2013 Sir
what is the difference between beneficial ownership n legal ownership?
how is it possible the person having 20% voting power and still is not the owner of the company

Naresh Kansala

Naresh Kansala (Expert)

12 January 2013 in laymen language legal owner is who hold the title of the property and the beneficial owner is who enjoy the benefits of that property on behalf of title holder.

20% voting power does not make u owner of the co. not even anything else. it gives you only some rights but not the ownership.(apki baat pehle suni jayegi and to some extend maani b jayegi)

its as simple

we we go out with frds to dominos n contribute more than our frds .. they only give use right to chose what to eat instead of whole Piza.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

13 January 2013 I agree with the expert "Naresh" and do add an example-
In case of your shares in Demat A/c- The depository is treated as the legal owner of the shares and you are treated as a beneficial owner. The dividend, Bonus, etc will be enjoyed by you.
.
The person can be said to be owner of the shares through which he gets 20% voting right in the company. He can not demand 20%
Assets or Liabilities of the company. Company itself is a separate legal entity.
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CA Gyati Gupta

CA Gyati Gupta (Querist)

13 January 2013 Thanks experts naresh sir n bafra sir.

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