As you know, the named shareholders do not hold anything directly in the company. They are responsible for the maintenance of the beneficiary`s shares. The designated shareholder has no right to the company. Although they share the details of the company`s bank account, it is certain to remember that these named shareholders cannot sign signs, have no rights to the assets and are not entitled to any type of shares. Nominated shareholders do not have access to the company`s bank account, cannot sign cheques or make payments, and have no legal right to manage the company`s assets. The actual owner of the shares continues to benefit from their property and receive their dividends as usual. Please note that a nominated shareholder may be an individual or a company and it is also possible to have more than one nominee who has the right to obtain shares in common. Similarly, the beneficiary of the shares can be either a company or an individual. A company will not record information about a trust agreement in its shareholder register (members` register) and, as far as the company is concerned, the person listed in the company`s share register is the registered shareholder. The economic beneficiary of the shares will therefore often want his candidate to make a declaration of confidence to document the conditions under which his candidate holds the shares. A candidate can be either an individual or an organization.
This declaration of confidence – The nominated shareholder model contains a number of shareholder-designated commitments that ensure that the economic beneficiary benefits from the benefits of the shares and is able to control the rights attached to the shares. As part of these commitments, the designated shareholder must report to the economic beneficiary all dividends and other distributions he has received under the nominee shares; Follow the instructions of the actual beneficiary in the exercise of all voting rights and powers of the candidate; and transfer the shares in accordance with the economic beneficiary`s instructions. This declaration of confidence should be used when a designated shareholder, who is the registered owner of shares, holds shares for the benefit of another person (the economic beneficiary). An economic beneficiary may nominate a candidate under a company`s participation agreements because he does not want his name on the share register, or he must nominate a candidate, for example. B by the company`s statutes.