As per the Companies Act, 2013 and Schedule III requirements, companies must disclose details of shareholders holding more than 5% of the total shares in the company.
This disclosure is mandatory in the Notes to Financial Statements and includes:
- Name of each shareholder
- Number of shares held
- Percentage of total shareholding
The 5% threshold is considered a significant stake in the company and is important for:
- Identifying substantial shareholders
- Corporate governance and transparency
- Determining potential related parties
- Understanding ownership structure
For example, if a company has issued 1,00,000 equity shares, any shareholder holding more than 5,000 shares (i.e., more than 5%) must be individually disclosed in the financial statements.
Correct Answer: Option 2 - More than 5%