nomination of shareholders
This query is : Resolved
21 October 2010
Let us consider A, a listed company, acquires all shares of B, another public ltd. co.Now to bring the min. no.of members to 7 A nominates another 6 individuals to be members of B apart from itself(1+6=7)and arranges to transfer 1 share each in the names of these 6 people(these 6 will not be paying for these shares). If A has to retain its 100% ownership status should these 6 people appear in B's register of members as joint holders in respect of these 6 shares with A or should they appear as nominees only?
What will be the legal difference in both cases?
Also advice regarding giving of declaration of beneficial ownership under sec. 187C of Cos. Act. Will it be required in case of joint holdership?
What will be the legal difference in both cases?
Also advice regarding giving of declaration of beneficial ownership under sec. 187C of Cos. Act. Will it be required in case of joint holdership?
29 October 2010
They should appear as nominee only. As these 6 individuals does not hold beneficial interest in the shares.
Compliance under 187C
1. Nominee shareholder should make declaration to the company in Form 1 (IN DUPLICATE)within 30 days after his name is entered in the register of member.
2. Company shall file form 22B within 30 days from the date of receipt of declaration. (Attached declaration received in Form I)
In case of joint shareholding 187C does not apply as there is no inter se trustee-beneficiary relationship is created.
Compliance under 187C
1. Nominee shareholder should make declaration to the company in Form 1 (IN DUPLICATE)within 30 days after his name is entered in the register of member.
2. Company shall file form 22B within 30 days from the date of receipt of declaration. (Attached declaration received in Form I)
In case of joint shareholding 187C does not apply as there is no inter se trustee-beneficiary relationship is created.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Gst on travel by air for business purposes
- CLOSING STOCK QUERY
- Gst reverse charge mechanism to be claimed in the month of payment
- Loss of interest in PF transfer from EPFO to Trust
- Itr processing refund
- Taxation on Old jewellery sold
- TDS refund Indemnity Bond
- PF wage ceiling
- GST ISD Query on various AMCs
- Query regarding TDS on EPFO Higher Pension Arrears- under wrong section
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
- Query regarding reporting of exempt foreign remuneration in ITR (AY 2026-27)
- FEMA/RBI treatment — Amazon.ca arbitrage (US buy, Canada sell, goods never enter India)
- Goods return by customer
- INWARD REMITTANCE FOREIGN
- CPC and SAC
- Account freezed for Ineligible ITC Scrutiny for GST Annual Return
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
