Mr. A is the Company Secretary of PQR Limited. The Chairman of company asked Mr. A to inform the Board about the procedural requirements for Significant Beneficial Owner (SBO) under Section 90 of the Companies Act, 2013

Procedural requirements for Significant Beneficial Owner(SBO) Procedural requirement for SBO under Section 90 of the Companies Act, 2013 (Act) and Rules made thereunder are as follows: Every reporting company, which is required to comply with sec 90, shall take necessary steps to identify if there is an individual who is a Significant Beneficial Owner ("SBO") in relation to the company in terms of Rule 2(1)(h) of the Companies (Significant Beneficial Owners) Rules, 2018 ("SBO Rules") and require him to file a declaration in Form BEN-1 to the reporting Company. Further, as per Sec 90(5) of the Act, without prejudice to the generality of the procedure as above stated, every reporting company shall give notice, in Form No. BEN-4, to any person (whether he is a member of the company or not) where company believes or has reasonable cause to believe- to be a SBO of the company; to be having knowledge of the identity of a SBO or another person likely to have such knowledge; or To have been a SBO of the company at any time during the immediately preceding last 3 years from notice is issued, Further, who is not registered as a significant beneficial owner with the company as required under section 90. Such a person has to provide such information with 30 days from receipt of notice from reporting company. Also, as per Rule 2A of the SBO Rules, without prejudice to the generality of the steps stated above, every reporting company shall give notice, in Form No. BEN-4, seeking information about the SBO, to such member (other than an individual), who holds not less than ten per cent of its (a) shares, or (b) voting rights, or (c) right to receive or participate in the dividend or any other distribution payable in a financial year; The SBO, so identified shall submit the Declaration in Form BEN-1 with the company, within 90 days from 01-Jul-2019 i.e., the commencement of Companies (Significant Beneficial Owners) second Amendment Rules, 2019. Further, where an individual becomes SBO, subsequently, he has to file such form within 30 days from acquiring such ownership and any change thereon. Upon receipt of declaration as above, the reporting company shall file a return in Form No. BEN-2 with the Registrar in regards with such declaration, within 30 days along with the fees. The company shall maintain a register of significant beneficial owners (SBO) in Form No. BEN-3. Application to the Tribunal (NCLT) in case SBO makes non-compliance The reporting company shall make the application to the tribunal if: Such person fails to provide the information required by notice in form BEN-4 within 30 days or Information provided is not satisfactory within a period of 15 days of the expiry of the period specified in the notice, for order directing that the shares in question be subject to restrictions with regards to Transfer of interest, Suspension of all rights (right related to dividend or voting right) attached with the shares. Further, the tribunal after giving the opportunity of being heard to both the concerned parties, pass the order as deemed fit, within 60 days of receipt of application. Further, if any party is aggrieved by the order, may make application for relaxation or lifting of the restrictions within 1 year from the date of order. If no such application has been filed within a period of 1 year from the date of the order, such shares shall be transferred, without any restrictions, in the Government bank's account i.e. IEPF Account.