LAW DECODED

In praesenti : at the present time. At loggerheads (phrase) : In dispute. Sine qua non : An essential condition anterior : Earlier in time De jure : In accordance with law De Facto : That is true in fact Noscitur a sociis (Latin) : the meaning of a word may be known from accompanying words. Under the doctrine of noscitur a sociis, the meaning of questionable words or phrases in a statute may be ascertained by reference to the meaning of words or phrases associated with it. Ipso-facto : By the very fact Lis pendens : a pending legal action. Jus ad prem: a right to a thing. It is personal right to possession of property that usually arises from contractual obligation such as lease Jus in rem : a right enforceable against anyone interfering with that right founded on some specific relationship , status, or particular property.

1. Is there any connection between section 89(Declaration in Respect of Beneficial Interest in any Share) and 90 of the Companies Act, 2013? First of all, we have to understand the purpose of sections 89 and 90. Section 89 : Section 89 comes into picture when Legal owner and Beneficial owner are different.  For example, XYZ Ltd wants to incorporate ABC Ltd, a wholly-owned subsidiary ( WOS ) company. In this case, to incorporate ABC Ltd. we need 7 members ( to incorporate a public company in India, at least 7 members are required ). Since ABC Ltd going to be WOS, then total shareholdings must be with XYZ Ltd. To solve this situation, XYZ Ltd. may nominate 6 individuals who shall be just legal owners (whose name just recorded in the register of members) to comply with the requirement to have 7 members (including XYZ Ltd) whereas beneficial owners shall be XYZ Ltd. Compliance : In the above case to fulfill the compliance part, 6 individuals so nominated above will file a de