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Sale of shares to foreign company
Dear friends,
Have one query. A , the foreign company helds 49% share in B co and it wants to sell full share to other foreign co I.e, C. C has decided Mr.D to held the 49% share as nominee for C co. D is also the foreigner. Can this be done ?
Wont D be considered as beneficial interest in B co ??
Plz some one reply.
Replies (1)
As per my opinion, it is possible.
As per Section 187 of Companies Act, 2013, All investment made in Securities shall be made in its own name. However, this section is applicable only to Company. Hence it is not applicable to foreign company.
Other than this section, there are no section which restrict to hold shares of company as beneficial ownership.
So, if Mr. D wants to hold shares on behalf of C Co, then he can hold it as nominee. Becuase of this, D will become nominee and C Co. will have beneficial ownership of such shares.
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