What is a Nominee Shareholder?
Nominee shareholders are used in situations where beneficiary shareholders want to retain their anonymity and therefore do not want to be listed at Companies House or on the company register. Nominee shareholders can hold shares in a company on behalf of the beneficial shareholder.
There is an agreement created in advance which outlines the nominee shareholders role and responsibilities. This enables the company to restrict the nominee shareholders authority in the company, preventing them from getting involved in the day to day business activities. A declaration of trust, known as a custodial agreement, must be signed by the nominee shareholder which will state that they have no legal claim to these shares.
More Group can act as or appoint a nominee shareholder for your company. As a professional accounting and consulting firm we are committed to safeguarding your company’s compliance while providing anonymity to you as a shareholder. As nominee shareholder, we can hold the legal title to the shares to protect your privacy however we will not own the shares or benefit from them. As a beneficiary shareholder, you will retain all the privileges you had initially such as the power to vote and receive dividends.
People with Significant Control
In April 2016, the Small Business and Enterprise Act was introduced to remove secrecy surrounding shareholders holding more than 25%. These are ‘People with Significant Control’ as their significant share in a company will give them considerable power within the company to influence decisions and activities. It is a criminal offence in the UK to withhold this information and both the company and individual could be prosecuted for submitting false or misleading information.
PSC information is publicly available so it can be accessed by anyone who wants to see it. The only information that is not publicly available is their home address and day from their date of birth.
In special cases, some individuals may be legible to protect their PSC information. They will need to apply for this, and if it is granted this should be noted on the company’s PSC register.
How we can
Our reputation as a reliable accountancy firm makes us an excellent choice as a nominee shareholder. We can also assist you in drafting the agreement, offering professional guidance during this process, and providing guidance on PSC. At More Group we consult with our clients’ regularly to ensure their individual needs are understood and achieved.
We will involve you in the drafting of the nominee shareholder agreement, so your requirements are clearly stated in the document. You can be confident we will act in line with your best interests and adhere to the agreement. Our consultants will provide you with a confidential streamlined service. Contact More Group today to find out more about the nominee shareholder service we can offer you.