Podcast
Questions and Answers
What is meant by 'beneficial ownership of shareholders or officer of a company'?
What is meant by 'beneficial ownership of shareholders or officer of a company'?
Who is considered a 'minor' under the provisions of beneficial ownership?
Who is considered a 'minor' under the provisions of beneficial ownership?
What is meant by 'control' in relation to securities?
What is meant by 'control' in relation to securities?
In the case of a company where an officer or substantial shareholder is a shareholder, which securities are considered beneficially owned?
In the case of a company where an officer or substantial shareholder is a shareholder, which securities are considered beneficially owned?
Signup and view all the answers
Who is not considered a beneficial owner of securities under the provisions?
Who is not considered a beneficial owner of securities under the provisions?
Signup and view all the answers
What is the minimum percentage of issued share capital required for a person to be considered a substantial shareholder?
What is the minimum percentage of issued share capital required for a person to be considered a substantial shareholder?
Signup and view all the answers
What is not included in the definition of a 'body corporate' or 'corporation'?
What is not included in the definition of a 'body corporate' or 'corporation'?
Signup and view all the answers
What is the primary responsibility of a chief financial officer?
What is the primary responsibility of a chief financial officer?
Signup and view all the answers
What is the meaning of 'central depository' under this Act?
What is the meaning of 'central depository' under this Act?
Signup and view all the answers
What is included in the definition of 'books of account'?
What is included in the definition of 'books of account'?
Signup and view all the answers
Study Notes
Beneficial Ownership
- 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 and Substantial Shareholder
- 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.
Key Definitions
- 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.
Other Key Terms
- 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.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
This quiz covers the concept of beneficial ownership in a company, including securities owned by officers, substantial shareholders, and their family members.
