At incorporation, a limited liability company by shares will be required tofile a statement of beneficial ownership which shall state, in respect ofeach beneficial owner:
To encourage and increase transparency (the ownership and control structure) of legal persons and arrangements through disclosure of who ultimately owns, controls, exercises substantial interest in, or receives substantial economic benefit from a corporate. Further, the concept of Beneficial Ownership is aimed at curbing the use of corporate bodies for money laundering, bribery and corruption,
Why was the concept of Beneficial Ownership introduced in the Companies Act? Read More »
Section 3 of the Companies Act No. 10 of 2017 defines control as follows;“ control ”means the control of a company by a person who— (a) beneficially owns more than twenty-five percent of the issued share capital of the company; (b) is entitled to vote a majority of the votes that may be cast at
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Through ownership arrangements:
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Yes. Existing companies are required to notify the Registrar in the prescribed form, within fourteen days of such change, where a change occurs with respect to the particulars of shareholding or beneficial ownership stated in a Register maintained in accordance with this Act. Pursuant to section 21(2) the Registrar has established and maintains a Register
Are existing companies required to declare who the beneficial owners of shares are? Read More »
At incorporation, a limited liability company by shares will be required tofile a statement of beneficial ownership which shall state, in respect ofeach beneficial owner:
A Notice of Transmission of Share (Companies Form 19) is filed to the Registrar, where the registered holder of a share(s) dies or becomes bankrupt. In the case of the death of a shareholder of a company the— survivor or survivors where the deceased was a joint holder; and personal representative of the deceased where
How can shares held by a deceased shareholder be transmitted? Read More »
A company with unissued shares may allot the shares to any person who qualifies to be a shareholder. A return of allotment indicates the number of shares, the nominal amount of the shares comprised in the allotment, and details of each allottee and beneficial owners (if any). PREREQUISITE The company must have unissued shares Special
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A share indicates the pecuniary interest of the shareholders and their rights and liabilities. Shares in a Company are freely transferable. For the purpose of transfer of fully paid-up shares, a Notice of Transfer of Shares (Companies Form 3) must be completed. Companies Form 18 must be signed by both the transferor and transferee.
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The company secretary and board of directors are responsible for ensuring that the company maintains and updates information on the beneficial ownership of all the shares of the company and their associated voting rights. Further, they have a duty to take reasonable steps to ensure that the share and beneficial ownership register is properly kept
How do I disclose the beneficial owners of shares held by shareholders in a company? Read More »
