Nominee

A nominee is a person who is named as the owner of a financial asset, such as a stock or bond, but who does not actually own the asset. The nominee holds the asset on behalf of another person, known as the beneficial owner.

There are a number of reasons why someone might use a nominee. For example, a nominee can be used to protect the privacy of the beneficial owner, or to avoid taxes. In some cases, a nominee may be used to circumvent foreign investment restrictions.

The use of nominees is common in the financial world. For example, many mutual funds and hedge funds use nominees to hold their assets. Nominee companies are also often used to hold shares in private companies.

There are a number of different types of nominees. The most common type is a nominee shareholder. A nominee shareholder is a person who is named as the owner of shares in a company, but who does not actually own the shares. The beneficial owner of the shares is the person who actually controls the shares.

Another type of nominee is a nominee trustee. A nominee trustee is a person who is named as the trustee of a trust, but who does not actually own the trust assets. The beneficial owner of the trust assets is the person who benefits from the trust.

The use of nominees can raise a number of legal and tax issues. For example, it is important to ensure that the nominee is properly appointed and that the nominee agreement is properly drafted. It is also important to understand the tax implications of using a nominee.

If you are considering using a nominee, it is important to speak to an experienced financial advisor.