A candidate must make a statement of confidence stating that he has no advantage over the shares until the original shareholder is alive. This declaration is called a custody agreement. In accordance with the conservatory custody, the designated shareholder holds the shares. Any person or organization may hold the right to shares in connection with the appointment. A minor may also be a candidate for shares in a company. If the candidate is a minor, the shareholders designate any other person entitled to shares in the event of the death of the shareholders during the minority of the candidate. While conceptually simple, the shareholder nominist agreement actually carries risks for the beneficiary, which should be treated with serious negligence that the beneficiary may have to engage in as a result of the exercise of his rights and property. A nominee participation contract is often used interchangeably with the declaration of trust, but it can be separate documents. The shareholders` pact will often be more detailed than a simple declaration of confidence and will establish specific rules to ensure that the candidate does not have full control over the shares with which he is publicly linked. Notwithstanding the COPS regime, the rules for candidates can still be applied.

Depending on the amount of participation involved and the reason for the agreement, the information provided by the economic beneficiary may not be on the list of members of a company, but may be covered by the COPS scheme. The CSP regime supports the legal structure of the property. Independent legal advice may be required. In this article, I would like to give an overview of what you should be careful about if you ask someone to keep shares in a business for you. Such an agreement is often called a shareineee nominee arrangement. It is a simple form of declaration of trust that includes only the actions of a company and the basic declaration of trust. You`ll find a longer form agreement on the securities and a longer list of commitments between the nominee and the economic beneficiary under the Nominee Shareholders: Declaration of Trust – Long Form Agreement section. The designated shareholder refers to the shareholder in the name of another person or an economic beneficiary or an initial shareholder.