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Shares of beneficial interest are financial instruments that represent an ownership stake in a trust or other investment vehicle, such as a real estate investment trust (REIT). Holders of these shares have a claim on the income generated by the underlying assets, but they typically do not have direct control or management rights over those assets. Instead, the management of the trust or investment vehicle is responsible for making decisions regarding the assets. Beneficial interest shares can provide investors with income through dividends or distributions, depending on the performance of the underlying investments.

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1w ago

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Are shares of beneficial interest the same as preferred shares?

No, shares of beneficial interest and preferred shares are not the same. Shares of beneficial interest typically represent an ownership stake in a trust, allowing holders to receive income and participate in the trust's assets, while preferred shares are a type of equity security in a corporation that usually provides fixed dividends and has priority over common shares in asset liquidation. Both are investment vehicles but serve different purposes and structures.


What are the objectives of Section 89 of the companies act?

The fact that who shall be the “beneficial owner” was clear from the time Section 89 was enacted, i.e. 1st April 2014, the “beneficial owner” will be the person in which “beneficial interest” is vested. Still, there was a lot of ambiguity as to what amounts to “beneficial interest” and on what grounds we can say that the “beneficial interest” lies with a person, not a person whose name is registered in the Register of Members. Companies (Amendment) Act, 2017 added a new sub-section (10) to Section 89 to define “beneficial interest” with effect from June 13, 2018. Section 90 was also substituted for SBO identification. Objectives- Section 89 has an objective to check where does the “beneficial interest” lies, irrespective of the quantum of “beneficial interest”, if any person whose name is registered in respect of particular shares doesn’t have any beneficial interest in those shares shall declare to Company in MGT-4 and person who has been vested with such beneficial interest declare in MGT-5 and subsequently, the Company shall file e-Form MGT-6 to RoC. It may not be necessary every time the firm obtains a declaration of MGT-4 & MGT-5, since the registered owner may sometimes hold shares for the benefit of another person for shares registered in his name. If the beneficial interest is not held by the registered owner, Section 89 requires disclosure. Section 89 has been harmonized in a manner that if any individual having “beneficial interest” in any shares not registered in his name and has declared in Form MGT-5 to the Reporting Company shall be treated to have rights or entitlements in the shares “DIRECTLY”.


What is the difference between shareholder and shareowner?

I presume the difference between a shareholder and shareowner is that shareholders are fiduciaries that hold shares for safekeeping until the shares are properly transferred to shareowners who outright own shares in equitable title; thus, being the ultimate customer and beneficial owners. Shareholders are custodians that have a minority interest in the shares, as opposed to a majority or material interest.


How can one get a beneficial loan?

A beneficial loan is when an employee receives an interest-free (or low interest) loan from his employer as a benefit to having worked there and proven his loyalty to the company. Since this is a company 'perk', it isn't available at every workplace, and the interest rates vary greatly. The beneficial loans are usually used to purchase company shares, not for buying a new luxury vehicle. Again, if one wishes to receive one of these beneficial loans, it is up to the discretion of their employer.


Are Dividends considered Interest?

Dividends are income from shares. It is not Interest


How beneficial are CD interest rates?

What is beneficial about CD interest rates is that they are constant for the specified period of time. Sometimes interest rates can go up or down but CD interest rates would stay the same.


Money market mutual funds sell shares to investors and use the money to buy?

Shares in companies, and they use the interest earned on shares to pay interest to those who invested. They were originally invented t by banks to get around the ban on being allowed to pay interest on current accounts


How does an investor get ownership interest in a company?

by purchasing shares in the company


Shares are halal or haram?

Provided the principle is only to share in profits, nothing in the share deal involves interest and the business in which the shares are held is not involved in anything haram, holding the shares are halal.


What are Cumulative and non cumulative shares?

Cumulative shares are when the shares are combined and then evenly distributed to the share holders. Non cumulative preference shares are when they go to certain people first.


Who are the only people you should add as friends?

people you know well and who shares your interest.


Can a testator pass on his beneficial interest in a property without having legal title to it?

Depends on the type of interest and what the Trust documents say.