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section 187C meaning and applicability.

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shruti (Querist)
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21 August 2010 can anyone tell me when does section 187C become applicable? And what does the term 'nature of beneficial interest' imply in the declaration to be made under section 187C(1)??

Jagruti (CS)

Jagruti (CS) (Expert)
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24 August 2010 187C is applicable when shares are held by individuals for the benefit of other party.
For instance: directors of a Company holding shares for the COmpany or like nominee sirector holding shares on behalf of Bank or the institutions.

Nature of Interest implies the extent of interest like only in dividend sharing or entirely shares held by such Member.

The declaration is to be made by person holding shares in Form I while the person in whose benefits shares are held need to file declaation in Form II to COmpany within 30 days of becoming beneficially interested.

Format of same you will get from Rules " Companies(Declaration of beneficial Interst in Shares) Rule 1973.

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