In This Article, We Will Cover Section 89 Of The Companies Act, 2013; Where We Understood The Declaration To Be Given By The Registered Owner And The Beneficial Owner.

Section 89: Declaration in respect of Beneficial Interest in any share

1. FORM MGT 4 – Declaration by registered Owner to the company within 30 days from date of entry in the register of members as a registered member or 30 days of any change in beneficial interest.

2. FORM MGT 5- Declaration by Beneficial Owner to the company within 30 days of acquiring beneficial interest or 30 days of any change in beneficial interest.

3.E-form MGT 6- it is to be filed by a company after receiving MGT 4 and MGT 5 before ROC. ( For specified IFSC Public and specified IFSC Private can do so within 60 days)

4. Make necessary entries in MGT 1 (Register of Member)

5. Penalty –

  • On person, who fails to make the declaration in MGT 4 or MGT 5 shall be liable for Rs. 50,000 and where failure continuing one then Rs. 200 per day till failure continues subject to maximum Rs. 5 Lakh.
  • On Company, who fails to file MGT 6 before the expiry of the due date, the company and every officer who is in default shall liable for penalty:
Company Rs. 1000 for each day during which offense continues up to the max- Rs. 5 Lakh
Officer in default Rs. 1000 for each day during which offense continues up to the max- Rs. 2 Lakh

*Proposed amendment as per companies (amendment) Act,2020

The CG may by notification exempt any class or classes of persons from complying with any of the requirements of section 89 except subsection (10) if it considers such exemption will be in the public interest.

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Qualification: CS
Company: E-SMART SYSTEMS LIMITED
Location: New Delhi, Delhi, India
Member Since: 01 Feb 2018 | Total Posts: 10
Experienced Company Secretary with a demonstrated history of working in the Legal Services industry. Skilled in Drafting Agreements, Legal Compliance, Company Law, Document Drafting, and Legal Document Preparation. Strong administrative professional with a Bachelor of Laws (LL.B.) focused in Law fro View Full Profile

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