does beneficial owner and significant beneficial owner mean same?
are share holders beneficial owners?
As per Section 89 of the Companies Act 2013, Beneficial owner means the person who either holds himself or through one or more person or through trust the beneficial interest in the Company or right to hold the share in the Company. Benificial owner is the actual owner of the Company but only his name is not entered in the registrar of members.But has the right to vote in the Company.
For example : Mr. ABC Private Limited is holding 20 percent of the share in XYZ Private Limited Company. in such a case ABC Private Limited is the beneficial owner.
As per section 90 of the Companies Act 2013, significant Beneficial owner shall always be the natural person and such natural person shall holds at least 10 percent of the shares in the company as ultimate beneficial owner. Suppose if the Company is holding 30 percent shares in the Company , then to check the condition of SBO, the shareholder in that Company shall holds at least 10 percent of the shares in that Company as Ultimate Benificial owner. To check the qualification of SBO, both the conditions of Direct Shareholding and indirect shareholding shall be considered.
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