Applicability of 187c in joint holdings

Others 636 views 5 replies

We have a subsidiary A in which we are holding 49,994 shares of Rs. 10/- each. Six shares are with other officers of our company (Six shareholders with nominal 1 share each) in joint holding with our company. Does section 187C still applies? As such being the first joint holder all the dividends, notices etc are coming to us and the second holder is just for the sake of name. Also in the rules related to this section they say Section 187C has become redundant whereas Form 22B is still applicable, a lot of confusion, can anyone help..and yeah laugh if it is applicable then what are the penalties of default and way out

 

An expert advice awaited :) thanks

Replies (5)

Please revert

Dear Khushboo,

Please clear me one thing that six shareholders are hold shares on behalf of Company or hold in the individual capicity?

 

Originally posted by : Neha

Dear Khushboo,

Please clear me one thing that six shareholders are hold shares on behalf of Company or hold in the individual capicity?

 


the holding is in joint name in this format "XYZ Limited and Mr ABC"

Being a public limited co, 6 officers are holding 1 share each to maintain the minimum no of members criteria. Further they are the joint holder with the holding co. Their name is appearing in the register of member. They are beneficial owner of shares held by holding co. Section 187C applies, form 22B shall be filed.

 

I am not 100% sure but my view is that Form 22B is not required to be filed in this regard. Mr. ABC is one of the joint shareholders of the company. He is not a nominee of XYZ Limited. Had he been a nominee holding shares on behalf of XYZ Limited, then Form 22B would have been compulsory.

Other views welcome. Since this query is a little old, request Ms. Khushboo to share what she ultimately did.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register