Under UK corporate law, all shareholder information must be registered with Companies House and in the company`s legal registers. Therefore, if, as a beneficial owner, you wanted to protect your identity as a legitimate owner of a business, then a candidate shareholder is the answer. Prior to March 15, 2016, a nominated shareholder protected the identity of the shareholder (i.e. the actual owner) and was an individual, company or LLP holding shares in the name of the actual owner. In the context of a company, a designated shareholder is publicly designated as the holder of the shares, but must be accountable to the actual owner of the shares, who remains anonymous. In general, the relationship between the owner shareholder and the actual owner is governed by a declaration of confidence (or another confidential nominic agreement) stipulating that it is the actual owner who owns the shares, not the nominee. A power of attorney is made available to the buyer by the Nominee to give that person the power to present himself and act for the business. Individuals or companies acting as a nominee must be compensated for the potentially harmful acts of the person who actually runs the business. The agreement is generally referred to as a compensation obligation and signed by those who purchase the company`s nominary services. Although there is a standard compensation obligation, they can sometimes be amended to include or exclude certain activities that one or both parties may require. Improving the transparency of ownership and control of UK businesses is the aim of the recent People with Significant Control (PSC) legislation, introduced on 6 April 2016. Due to PSC regulations and the size of the stake, owners of shares of British companies may no longer be able to hide behind named shareholders.

Since the candidate will play little or no role in the day-to-day operations of the new business, the actual owners of the business will need proof that they own the business and are responsible for the business. This is despite the existence of no apparent evidence at Companies House that they are somehow related to the case. In essence, a power of attorney will determine that the purchaser must act without restriction for the company and that they are the actual beneficiaries of the shares. A Nominee agreement by which a person accepts the activity of director, secretary or shareholder usually consists of conditions: the designated shareholder does not own the shares or in any way benefits from the shares. They are also not entitled to the shares and must sign a declaration of confidence which states that they do not benefit from them and that they have no legal right to the shares, thus protecting the assets of the beneficiary owner. Nominated shareholders may be individuals or organizations and can be established anywhere in the world, they should not be established in the same country as the beneficial owner or the company in which they hold shares. A designated shareholder is often designated to protect the identity of the beneficial owner for commercial or personal reasons. There are many reasons why a shareholder wants to keep his details and details of his private investments. The beneficial owner receives the income or dividends from the holding of shares, but it is the designated shareholder who appears on the share certificate and on the company`s official documents and public records. If, for whatever reason, the founder of the company does not have people at his disposal to fill these roles, or if they do not want to be shown as fulfilling the roles themselves, then the nomination of the nominees is the best option. Our package of nominee shareholders starts at $279.99 PLUS VAT.

For more information, visit our nominatable shareholders page.