Companies Act, 2017 — section 123A

123A. Record of ultimate beneficial owner..—(1) A company shall maintain information of its ultimate beneficial owners in such form and manner, within such period and obtain such declaration from its members as may be specified. Explanation-For the purpose of this section, the term “ultimate beneficial owner” means a natural person who ultimately owns or controls a company, whether directly or indirectly, through at least twenty five percent shares or voting rights or by exercising effective control in that company through such other means, as may be specified.

(2)Every company shall, in such form and manner as may be specified, maintain a register of its ultimate beneficial owners and shall timely record their accurate and updated particulars, including any change therein, and provide a declaration to this effect to the registrar and where any government is a member of a company such particulars of the relevant government shall be entered in the register of ultimate beneficial owners in the specified manner.

(3)Any contravention or default in complying with requirement of this section shall be liable in case of,

(a)a director or officer of the company or any other person, to a penalty which may extend to one million rupees; and

(b)the company, to a penalty which may extend to ten million rupees.]