Shade shadow in the Nominee Agreement

Aug 6th, 2022
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Term and termination This Agreement shall be in force until terminated by either Party, giving the other Party three months written notice.
A nominee is a person the policyholder chooses to receive the benefits in case of their death. The nominee can be any spouse, child, or family member. The nomination process is governed by Section 39 of the Insurance Act 1938.
Given this a Nominee Trust is not a true trust such as an irrevocable trust, which is controlled by a trustee. In an irrevocable trust you relinquish ownership in the trust property and the control over the trust property is given to a trustee for the benefit of the trust beneficiaries.
A nominee is a company that is nominated to hold assets on behalf of another entity. In early stage investing, the nominees role is to hold shares in a company on behalf of the underlying investors in the business.
Reason for such arrangements The person who is named as the owner is the nominee while the person who actually paid for the shares is the beneficiary. The beneficiary often feels that there is a need to be not named on the register of members as a shareholder and hence enters into such an arrangement.
What is a Nominee Agreement? A nominee agreement is an agreement where one person agrees to act on behalf of another person in certain legal matters. A nominee agreement is like a power of attorney but may be broader in scope.
A nominee agreement is an arrangement between two parties where one person consents to acting as a director, secretary or shareholder for a company which is owned by someone else.

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