Is a nominee shareholder the controlling party in a limited company?


I am part of a limited company that is part-owned by a large company. But they appear on the register using a nominee shareholder. As this company is the biggest stakeholder in my company, this got me wondering: is a nominee shareholder always the controlling party in a limited company? Or is this a unique situation?



A nominee shareholder is not the controlling party in a limited company - a nominee is simply someone who is appointed in a name-only capacity on behalf of someone who wishes to remain anonymous. The nominee’s details are registered on public record but someone else actually owns the shares that are represented by the nominee.

Many individuals and corporate bodies appoint nominees to protect their privacy - as a shareholder, your details are placed on public record, but not everyone is comfortable with that. Some people do not want their personal details made available to the public; some people do not want their involvement in a company to be known.

The anonymous shareholder is the beneficial owner and they retain all of their rights - the nominee will simply act on their behalf in accordance with their instructions.

2 years ago

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