Regarding Significant Beneficial Ownership ad BEN 2 form

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AviGan (Querist)

19 March 2020 Sir/Madam My query is if 2 individuals are shareholders of a private limited company holding 49% and 51% shares and are also directors of the same Company Will they be treated as Significant Beneficial Owner and Will the Company file BEN-2.

Thanks in Advance

CA AnKiT BoHrA (AB)

CA AnKiT BoHrA (AB) (Expert)

22 March 2020 A person is considered as a Significant Beneficial Owner (SBO) if he/she, whether acting alone, together or through one or more individuals or trust holds a beneficial interest of at least 10% (25% previously)
In order to be a SBO, a person must have an indirect right or entitlement and where the person has only direct holding, he shall not be termed as the SBO. This is mainly because the provisions have been framed to identify the ultimate beneficial so, where the owners are well disclosed to the company, the application of the said Rules will be of no use.
A director shall not considered as Significant Beneficial Owner and no need to file any disclosure of SBO.

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