Section 123A was introduced as an amendment to Companies Act 2017 in Pakistan to address the issue of beneficial ownership.
Section 123A of the Companies Act 2017 in Pakistan relates to the disclosure of beneficial ownership of shares in a company. The provision aims to identify the individuals who ultimately own or control the shares of a company, even if the shares are held by nominees or other entities.
According to Section 123A, every company is required to maintain a register of beneficial ownership of shares. The register should contain information about individuals who have significant ownership or control over the company, including those who hold more than 10% of the shares or voting rights.
The register of beneficial ownership must include the following information:
1. Full name and residential address of the beneficial owner.
2. CNIC or passport number of the beneficial owner.
3. Nationality and any other identity information required by the Securities and Exchange Commission of Pakistan (SECP).
It is the responsibility of the company to identify and obtain information from its shareholders to determine the beneficial ownership. Companies are required to keep the register up-to-date and maintain the confidentiality of the information provided.
Additionally, companies are also required to file an annual return with the SECP, providing details of the beneficial owners as per the register. This information is crucial for transparency, preventing money laundering, and combating the financing of terrorism.
Non-compliance with the provisions of Section 123A can result in penalties and legal consequences for the company and its officers.
It is important to note that the Companies Act and its sections can be amended over time, so it’s advisable to consult the latest version of the Companies Act and seek professional advice for accurate and up-to-date information