'Hiding' shareholders in a ltd company
Discussion
Yes, nominee could easily screw ‘real’ owner
Also consider dividends / tax for all parties
Can the shareholder participate in a different way? As a lender to the co for instance? Changing the terms of a loan might be easier than going down the nominee road and the identity of the lender need not be disclosed outside the company.
Also consider dividends / tax for all parties
Can the shareholder participate in a different way? As a lender to the co for instance? Changing the terms of a loan might be easier than going down the nominee road and the identity of the lender need not be disclosed outside the company.
JPJPJP said:
Yes, nominee could easily screw ‘real’ owner
Also consider dividends / tax for all parties
Can the shareholder participate in a different way? As a lender to the co for instance? Changing the terms of a loan might be easier than going down the nominee road and the identity of the lender need not be disclosed outside the company.
Use a company which is a nominee, incorporated in a low disclosure territory. Also consider dividends / tax for all parties
Can the shareholder participate in a different way? As a lender to the co for instance? Changing the terms of a loan might be easier than going down the nominee road and the identity of the lender need not be disclosed outside the company.
Ensuring that the nominee responds and acts as the beneficiary wishes
That the beneficiary complies with her local requirements for disclosure etc of her beneficial ownership
That the fees might be high and/or escalate rapidly
That the nominee co / contacts at it vanish
That the drift towards transparency catches the jurisdiction / structure and reveals the beneficiary in an uncontrolled / untimely manner
None of which mean it isn’t a solution, but all are things that need considering
That the beneficiary complies with her local requirements for disclosure etc of her beneficial ownership
That the fees might be high and/or escalate rapidly
That the nominee co / contacts at it vanish
That the drift towards transparency catches the jurisdiction / structure and reveals the beneficiary in an uncontrolled / untimely manner
None of which mean it isn’t a solution, but all are things that need considering
JPJPJP said:
Ensuring that the nominee responds and acts as the beneficiary wishes
That the beneficiary complies with her local requirements for disclosure etc of her beneficial ownership
That the fees might be high and/or escalate rapidly
That the nominee co / contacts at it vanish
That the drift towards transparency catches the jurisdiction / structure and reveals the beneficiary in an uncontrolled / untimely manner
None of which mean it isn’t a solution, but all are things that need considering
The nominee is a company. The shareholder who wants to remain anonymous is the shareholder, and economic owner of the underlying shares held by the nominee company - so no economic risk. Choose a location which has light touch reporting requirements of its shareholder register. That the beneficiary complies with her local requirements for disclosure etc of her beneficial ownership
That the fees might be high and/or escalate rapidly
That the nominee co / contacts at it vanish
That the drift towards transparency catches the jurisdiction / structure and reveals the beneficiary in an uncontrolled / untimely manner
None of which mean it isn’t a solution, but all are things that need considering
UBO rules might need to be considered.
Unless you're talking something of substantial value/importance, going offshore is brings potential issues on all sorts of things (getting regular bank accounts, credit and so on).
You could put someone else up front, hold the shares in blind trust and act as shadow director, however its not exactly the above board way to do it.
Out of interest, why is the true shareholder/director wanting to keep in the background? Restrictive covenants from a prior contract?
These things tend to get out and it's better forming an action plan that allows you to be out in the open.
You could put someone else up front, hold the shares in blind trust and act as shadow director, however its not exactly the above board way to do it.
Out of interest, why is the true shareholder/director wanting to keep in the background? Restrictive covenants from a prior contract?
These things tend to get out and it's better forming an action plan that allows you to be out in the open.
janesmith1950 said:
Unless you're talking something of substantial value/importance, going offshore is brings potential issues on all sorts of things (getting regular bank accounts, credit and so on).
You could put someone else up front, hold the shares in blind trust and act as shadow director, however its not exactly the above board way to do it.
Out of interest, why is the true shareholder/director wanting to keep in the background? Restrictive covenants from a prior contract?
These things tend to get out and it's better forming an action plan that allows you to be out in the open.
Pretty easy setting up a Guernsey company which only holds (legal title to) shares. No credit issues etc. You could put someone else up front, hold the shares in blind trust and act as shadow director, however its not exactly the above board way to do it.
Out of interest, why is the true shareholder/director wanting to keep in the background? Restrictive covenants from a prior contract?
These things tend to get out and it's better forming an action plan that allows you to be out in the open.
The biggest problem is UBO rules.
janesmith1950 said:
Out of interest, why is the true shareholder/director wanting to keep in the background? Restrictive covenants from a prior contract?
He is a director of another company in the sector and will be tracked by competitors whilst he attempts something innovative in the new company. Everyone else in the new company is unknown in the sector. If he’s unknown the new company it will be ‘under the radar’, and if it’s successful have a head start on competitors.
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