In order to bring clarity regarding the identity of ultimate owners of the company, disclosure of shares in the company held by each shareholder is required, holding more than _____ shares, specifying the number of shares held.

Under the Companies Act, 2013 and related disclosure requirements, companies must provide details about shareholders holding more than 5% of the total shares in the company. This disclosure includes:

• Name of the shareholder
• Number of shares held
• Percentage of total shareholding

This requirement ensures transparency in the ownership structure and helps identify the ultimate beneficial owners (persons who ultimately control or benefit from the company).

The 5% threshold is significant because:

• It captures substantial shareholders who may have significant influence over company decisions
• It helps regulatory authorities and stakeholders understand the ownership pattern
• It prevents concealment of beneficial ownership through complex shareholding structures

Such disclosure is typically made in the financial statements in the notes to accounts and in statutory reports filed with the Registrar of Companies.

Correct Answer: Option 1 (5%)