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CMA Intermediate · Business Laws and Ethics · Key Managerial Personnel

An item of special business at a general meeting of Ganga Ltd relates to another company, Yamuna Ltd. For which persons of Ganga Ltd must the shareholding in Yamuna Ltd be set out in the explanatory statement under Section 102?

Shareholding must be disclosed for every promoter, director, manager and other KMP of Ganga Ltd whose holding in Yamuna Ltd is at least two per cent of Yamuna's paid-up share capital. The proviso to Section 102(2) sets this threshold, so any-holding or ten per cent answers are wrong.

  1. AThose holding at least two per cent of Yamuna Ltd's paid-up share capital, being promoters, directors, manager and other KMP of Ganga LtdCorrect
  2. BThose holding any number of shares in Yamuna Ltd
  3. COnly directors holding at least ten per cent of Yamuna Ltd
  4. DOnly promoters holding at least five per cent of Ganga Ltd

Explanation

The proviso to Section 102(2) requires the shareholding interest in the other company of every promoter, director, manager and other KMP of the first company to be set out if it is not less than two per cent of that company's paid-up share capital. Other thresholds are not stated.

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