Sig­nif­i­cant ben­e­fi­cial own­ers face strict ac­tion

Deccan Chronicle - - Financial -

New Delhi, Feb. 10: Sig­nif­i­cant ben­e­fi­cial own­ers in cor­po­rates might face strict ac­tion for in­ad­e­quate or wrong dis­clo­sures about their own­er­ship and com­pa­nies too can seek ac­tion against en­ti­ties in case they fail to pro­vide sat­is­fac­tory re­sponses, ac­cord­ing to rules.

With the cor­po­rate af­fairs min­istry amend­ing the rules for sig­nif­i­cant ben­e­fi­cial own­ers un­der the Com­pa­nies Act, 2013, cor­po­rates are re­quired to take nec­es­sary steps to iden­tify such own­ers and ob­tain a dec­la­ra­tion from them.

Sig­nif­i­cant ben­e­fi­cial own­ers, who fail to make a dec­la­ra­tion re­gard­ing their own­er­ship, could face fine, im­pris­on­ment or both un­der the Com­pa­nies Act. In in­stances, where such en­ti­ties have wil­fully pro­vided in­cor­rect in­for­ma­tion, such acts would be con­sid­ered as fraud un­der the Act.

Com­pa­nies that fail to main­tain reg­is­ters of sig­nif­i­cant ben­e­fi­cial own­ers would also face ac­tion

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