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The Ministry of Corporate Affairs Government of India has recently released a notification on revision of form BEN 2 and amendment of the Companies {Significant Beneficial Owners} rules 2018 on 1th July 2019. It is known as Companies {Significant Beneficial Owners} rules, 2019 after amendment. Let’s dig in deeper to know the details.
Companies fill the Form no. BEN 2 to declare their beneficial owners under Section 90 of the Companies Act 2013. Furthermore, the reporting company submits this form to the Registrar of Companies.
The Section 90 {Investigation of beneficial ownership of shares in certain cases} of Companies Act 2013[1] states that when the Central Government thinks there is a reason, it may appoint one or more authorized people to investigate and report about the beneficial ownership. This is done by checking their shares, or class of shares following the provisions of Section 216 and may act like it was ordered under this section of companies Act.
MCA is the abbreviation given to the Ministry of Corporate Affairs. It regulates the corporate affairs in India through the Companies Act, 2013 and other allied acts. Its primary responsibilities include;
The significant beneficial Owner in relation to a reporting company refers to a person under Sub-Section 1 Section 90 of the Companies Act 2013, who is acting together or alone, with one or more individual (s) or trusts or possesses these rights in a company;
The Ministry of Corporate Affairs has changed regulations in the Companies {Significant Beneficial Owners} rules on 1st July 2019. Also they released a revised Form number BEN-2 which spells out the format in which companies will need to disclose their “{Significant Beneficial Owners (SBO)}” to the Registrar of Companies (RoCs).
The major updates of the amendments are as follows;
The last amendment in the Companies {Significant Beneficial Owners} amendment rules, 2019, held on 8th February 2019. The key highlights of this amendment are;
For full details of the previous amendment of the companies rules 2019, dated 8th February 2019 click here.
In recent amendment, the MCA has extended the last date for filing e-form BEN-2 to 30th September 2019 without payment of additional fee. However,additional fee shall be payable after the prescribed time.
One can read the complete notification here,
The amendments in the Companies rule will let the people know all about the Beneficiary owners of a company. Making public these details increases the credibility of that company in the market. Also the form number BEN 2 was revised which will be used by these companies to reveal the details of their beneficial owners to the registrar of companies. Moreover, this has to be done within 30 days
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