Decide, quoting the relevant provisions, if the following shareholders of Minimum Ltd. fall under the definition of Significant Beneficial Owner : (c) Ashok is the trustee of a Charitable Trust, which holds 20% of equity

Accordingly to Explanation I (iv) to Rule 2(1)(e) of the companies (Significant Beneficial Owner) Rules 2018, where the member is a trust (through trustee), the identification of beneficial owner(s) shall include identification of the author of the trust, the trustee, the beneficiaries with not less than ten per cent. interest in the trust and any other natural person exercising ultimate effective control over the trust through a chain of control or ownership. Ashok, the Trustee of a charitable trust that holds 20% equity in Minimum Ltd falls under the definition of significant beneficial owner. Alternate Answer (based on Companies (Significant Beneficial Owners) Amendment Rules, 2019) Rule 2(h) of the Companies (Significant Beneficial Owner) Amendments Rules 2019 defines the term significant beneficial owner in relation to a reporting company as an individual, who acting alone or through one or more persons or trust possesses one or more of the following rights or entitlements in the reporting company - a. Holds indirectly or together with direct holdings not less than 10% of shares b. Holds indirectly or together with direct holdings not less than 10% of voting rights in shares. c. Has a right to receive or participate in not less than 10% of the total distributable dividend or any other distribution in a financial year through indirect holdings along or together with any direct holdings. d. Has a right to exercise or actually exercises significant influence or control in any manner other than through direct holdings alone. Further: (i) in terms of Explanation I and Explanation II (i) to Rule 2(h) of the Companies (Significant Beneficial Owner) Rules 2018, if the shares in the reporting company representing such right or entitlement are held in the name of the individual then such individual shall not be considered to be SBO. (ii) in terms of Explanation III(i)(a) to Rule 2(h) of the Companies (Significant Beneficial Owner) Rules 2018, where the member of the reporting company is a body corporate (whether incorporated in Indian or not), then the significant beneficial owner shall be such natural person, who holds majority stake of that member (iii) in terms of Explanation III(iv)(a) to Rule 2(h) of the Companies (Significant Beneficial Owner) Rules 2018, where the member of the reporting company is a Charitable trust (through trustee), the individual who is the Trustee in case of a Charitable Trust, shall be considered to be the SBO. Accordingly: (a) Lakshman is holding 12% of the equity share capital in the reporting company in his own name and therefore cannot be considered as SBO. (b) Krishna who holds 75% of the equity capital, i.e. is a majority stakeholder in C Ltd which is a member of Minimum Ltd and hence Krishna is a significant beneficial owner. Guha who holds only 25% and not a majority stake, does not fall under the definition. (c) Ashok, the trustee of a charitable trust that holds 20% equity in Minimum Ltd falls under the definition of significant beneficial owner.