CS Jatin Bajaj
Who are registered owners?
Register owners are those who directly hold the shares of the Company and whose name is entered in the Register of Member under form MGT 1
Beneficial owners are those who hold the shares not in his own name but in the name of any other person such as bank, nominee etc.
According to section 89 of Companies Act 2013, Read with Rule 9 of Companies (Management & Administration) Rules 2014.
Declaration by Registered owner of shares who does not hold the beneficial interest in such shares
Where the name of the person is entered in the Register of Member of the Company as the holder of the share of the Company but who does not hold the beneficial interest in the shares, such person shall file a declaration with the Company in Form No MGT 4, WITHIN THE PERIOD OF 30 DAYS from the date on which his name is entered in the register of Members of the Company/
Contents specified in form MGT 4
Important Note: When any change occurs in the beneficial interest in such shares, registered owner within 30 days from date of change shall file declaration in Form MGT 4.
Declaration by the beneficial owner who holds or acquires beneficial interest in shares but whose name is not entered in Register of Member
According to Section 89(2), Read with Rule 9 of Companies (Management & Administration) Rules 2014,
Every person who holds or acquire a beneficial interest in share of a Company shall make a declaration to the Company in Form MGT 5 within 30 days from acquiring such beneficial interest in the shares of the Company
Contents of MGT 5
Important Note: When any change occurs in the beneficial interest in such shares, the beneficial owner within 30 days of change shall make the declaration to the Company in Form MGT 5.
Points to be noted:
Form MGT 4 is the declaration filed by registered owner of share to the Company
Form MGT 5 is the declaration filed by the beneficial owner to the Company
Form MGT 6 is filed by Company to Registrar in respect of declaration received by the Company as per form MGT 4 & MGT 5.
Weather Section 89 shall apply to the Government Company?
No, Section 89 shall not be applicable to Government Company vide Notification No. G.S.R. 463(E) dated 5th June 2015.