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Sec. 89 of companies Act
Corporate & Other Laws
Section 89 of Companies Act Talks about declaration of beneficial interest in respect of shares. Is it applicable to Depositaries ?? Means does Depositaries & members need to intimate the Company ??
Answers (4)
CA YOGITA HARJANI Faculty
Not applicable to depositories. Applicable to Beneficial Owner of shares who hold shares in D-Mat form.
Ma'am as per sec.89 Registered owner also has to send MGT-4 to companies
Thread Starter
Chandan SubudhiMa'am as per sec.89 Registered owner also has to send MGT-4 to companies
The register and index of beneficial owners maintained by a depository shall be deemed to be the corresponding register and index for the purposes of this Act (Sec 88) This means, for the purpose of understanding "Registered Member", we will consider the beneficial owners of the shares whose names are maintained by depositories. Depositories, per say, are only agents managing the securities for the Company. They don't have any rights related to the securities.
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