Nominee Shareholder

wealthymattersA nominee shareholder  is a person or entity listed as the holder of the securities or shares of an offshore corporation rather than its actual owner, which allows them to remain anonymous.

Traditionally, the way to maintain the privacy of investors and business owners has been the use of bearer shares. However, these titles are losing popularity due to restrictions imposed by measures against money laundering. But the offshore industry soon devised an alternative and introduced the figure of the so-called nominee shareholder or trustee. This can be a natural person or another offshore company that is exclusively incorporated to be used for this purpose and is usually provided by the registered agent or the formation agency ie a corporate trustee.

The data contained in the incorporation documents of the company, which are either filed with the registrar of companies or deposited privately at the registered office, depending on the legal requirements of the jurisdiction where the company is incorporated, refer only to the nominee shareholder.

So how are the rights of the real owner guaranteed? Because the nominee shareholder is included in all the documents of the company, it is necessary to take additional steps to ensure the rights of the real or beneficial owner. This can easily be solved by means of a document called declaration of trust. It is a private contract in which the nominee shareholder recognizes holding in their custody the company´s securities, although they actually belong to their client. Read more of this post

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