89. Declaration in respect of beneficial interest in any share
(1) Where the name of a person is entered in the register of members of a company
as the holder of shares in that company but who does not hold the beneficial interest in such
shares, such person shall make a declaration within such time and in such form as may be
prescribed to the company specifying the name and other particulars of the person who
holds the beneficial interest in such shares.
(2) Every person who holds or acquires a beneficial interest in share of a company
shall make a declaration to the company specifying the nature of his interest, particulars of
the person in whose name the shares stand registered in the books of the company and such
other particulars as may be prescribed.
(3) Where any change occurs in the beneficial interest in such shares, the person
referred to in sub-section (1) and the beneficial owner specified in
sub-section (2) shall, within a period of thirty days from the date of such change, make a
declaration to the company in such form and containing such particulars as may be
prescribed.
(4) The Central Government may make rules to provide for the manner of holding and
disclosing beneficial interest and beneficial ownership under this section.
(5) If any person fails, to make a declaration as required under sub-section (1) or
sub-section (2) or sub-section (3), without any reasonable cause, he shall be punishable
with fine which may extend to fifty thousand rupees and where the failure is a continuing
one, with a further fine which may extend to one thousand rupees for every day after the first
during which the failure continues.
(6) Where any declaration under this section is made to a company, the company shall
make a note of such declaration in the register concerned and shall file, within thirty days
from the date of receipt of declaration by it, a return in the prescribed form with the Registrar
in respect of such declaration with such fees or additional fees as may be prescribed, within
the time specified under section 403.
(7) If a company, required to file a return under sub-section (6), fails to do so before the
expiry of the time specified under the first proviso to sub-section (1) of section 403, the
company and every officer of the company who is in default shall be punishable with fine
which shall not be less than five hundred rupees but which may extend to one thousand
rupees and where the failure is a continuing one, with a further fine which may extend to
one thousand rupees for every day after the first during which the failure continues.
(8) No right in relation to any share in respect of which a declaration is required to be
made under this section but not made by the beneficial owner, shall be enforceable by him or
by any person claiming through him.
(9) Nothing in this section shall be deemed to prejudice the obligation of a company to
pay dividend to its members under this Act and the said obligation shall, on such payment,
stand discharged.