What is a nominee shareholder?

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We are putting together a limited by shares company in Wales, and we are thinking about shareholders. One of my colleagues would like to remain anonymous, and so has asked me to appoint a nominee shareholder. I’m not too sure. What exactly is a nominee shareholder, and how do they work?

Thanks

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Be careful - banks don't like nominees :)

a year ago

Answers

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A nominee shareholder is someone who is appointed to take the place of a true (beneficial) shareholder on the public register. The name and address of the nominee are registered with Companies House as a shareholder to protect the identity of the true shareholder. Corporate shareholders and individuals use nominees to protect their privacy.

The role of a nominee is in name only - they are not entitled to receive any profits from the company or make any decisions about how the company operates. These executive rights and responsibilities remain with the beneficial shareholder. A nominee will act in accordance with the instructions of the true shareholder only.

a year ago
 

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