Shareholders are considered as owner of the company as they invest money into the business and as per Companies Act, 2013 ("The Act"), shareholders are entitled to various rights such as voting right, right to dividend etc.
However, in certain cases, person holding shares in his name may not have the beneficial interest in such shares and some other person may have beneficial interest in those shares. Companies Act, 2013 ("The Act") contains provisions related to reporting about such cases.
Section 89(10) of the act defines beneficial interest in a share includes following right or entitlement of a person with respect to shares to (either directly or indirectly or through any contract or arrangement):
Provisions related to reporting about beneficial interest in shares is given in Section 89 of the act read with Rule 9 of The Companies (Management and Administration) Rules, 2014 ("The Rules").
As per Section 89 of the Act, reporting about following instances is required to be made either by company or by shareholder:
Where company is in receipt of any declaration in form MGT-4 or MGT-5, then the company shall make a note of such declaration in the register concerned and company shall file a return in MGT 6 with RoC intimating about such declaration within 30 days of receipt of declaration.
Return under section 89(6) of the act should be filed in form MGT-6.
Company is required to furnish following information while filing MGT-6:
While filing return in form MGT-6, company is required to mandatory attach copy of declaration (Section 89(1), 89(2) or 89(3)) received pursuant to which company is filing MGT-6.
Filing fee for MGT-6 will be based on nominal share capital of the company, which is as follows:
However, in case of company not having any share capital, fee of INR 200 will be applicable.
If company fails to files MGT-6 within prescribed time limit then additional fee shall be applicable based on delay in number of days:
Further, in case of an IFSC company, the additional fee shall be applicable only after the expiry of 60 days from the date of receipt of declaration. However, if form is filed after 60 days, penalty shall be computed considering due date of 30 days even for IFSC Company.
If a company fails to file MGT-6 within 30 days from date of receipt of declaration then the company and every officer in default shall be punishable with fine of minimum INR 500 but not exceeding INR 1,000, and where the failure is a continuing one, further fine of maximum of INR 1,000 for every day during which failure continues shall be applicable.
Download MGT 6
Companies to Report any change in share holding to ROC with in 30 days in FORM BEN 1 and BEN 2