Nominee Shareholder Services
A nominee shareholder is the registered shareholder of the issued shares of a company and his/her name appears on public records, thus ensuring the anonymity and privacy of the beneficial owner(s). The nominee shareholder holds the shares of the company on trust for the beneficial owner(s) and exercises the voting rights conferred to the holder of the shares by operation of the law in accordance with the instructions of the beneficial owner(s).
The nominee shareholder services are provided on the basis of a Trust Deed entered into between the beneficial owner(s) and the nominee shareholder, according to which the nominee shareholder undertakes to hold the shares in favour and for the benefit of the beneficial owner(s) and to and deal with the shares and exercise the voting rights attached thereto in accordance with the instructions of the beneficial owner and to assign the right to any dividends and/ or profits payable in respect of the shares to the beneficial owner(s) in exchange of a consideration. The beneficial owner(s) undertake(s) in turn to indemnify the nominee shareholder for any damage, expense or liability suffered thereby in connection with the provision of the nominee services.
The Trust Deed is usually accompanied by an undated Instrument of Transfer signed by the Nominee Shareholder allowing the beneficial owner at any given time to transfer the shares in his/her name and terminate the nominee services.