Beneficial Ownership in a Company

Questions and Answers

Ownership of securities held directly by an officer or substantial shareholder only

Ownership of securities held by an officer, substantial shareholder, or entities controlled by them

Ownership of securities held by anyone except an officer or substantial shareholder

Ownership of securities held by an officer, substantial shareholder, or their relatives (correct)

A person under the age of eighteen years (correct)

A person under the age of thirty years

A person under the age of twenty-one years

A person under the age of twenty-five years

The power to acquire securities

The power to exercise a controlling influence over the voting power (correct)

The power to hold securities

The power to sell securities

Only those securities held in its name Signup and view all the answers

A friend of an officer of a company Signup and view all the answers

Ten per cent Signup and view all the answers

A co-operative society registered under any law Signup and view all the answers

Financial reporting and planning Signup and view all the answers

As assigned to it under the Securities Act, 2015 Signup and view all the answers

All of the above Signup and view all the answers

Study Notes

Beneficial ownership refers to ownership of securities held, controlled, or beneficially owned by an officer or substantial shareholder directly or indirectly.
Includes ownership by:
- The officer or substantial shareholder themselves.
- The spouse of an officer who is not an officer themselves.
- Minor son or daughter of an officer (under 18 years old).
- A company where the officer or substantial shareholder is a shareholder, to the extent of their proportionate shareholding.

Control means the power to exercise a controlling influence over the voting power attached to securities.
A substantial shareholder is a person who has an interest in shares of a company:
- With a nominal value equal to or more than 10% of the issued share capital.
- Which enables them to exercise or control 10% or more of the voting power at a general meeting.

Board: Board of directors of a company.
Body corporate or corporation: Includes companies incorporated under this Act, companies incorporated outside Pakistan, and statutory bodies declared as body corporate, but excludes co-operative societies and certain other entities.
Book and paper: Includes books of account, cost accounting records, deeds, vouchers, writings, documents, minutes, and registers maintained on paper or in electronic form.
Books of account: Include records of all sums of money received and expended, sales and purchases, assets and liabilities, and items of cost.

Central depository: Has the same meaning as assigned to it under the Securities Act, 2015.
Chartered accountant: Has the same meaning as assigned to it under the Chartered Accountants Ordinance, 1961.
Chief executive: An individual entrusted with the management of a company's affairs, subject to the board's control and directions.
Chief financial officer: An individual appointed to perform customary CFO functions and duties.
Commission: Has the same meaning as assigned to it under the Securities and Exchange Commission of Pakistan Act, 1997.
Company: A company formed and registered under this Act or the company law.
Company law: Includes the repealed Companies Act, 1913, Companies Ordinance, 1984, Companies Ordinance, 2016, and this Act.