This article will explain what the shareholding confirmation question within our secure web form means.
We will elaborate on nominee Shareholders/Directors/General Partners, shares held in bearer form, and holding shares on behalf of another individual or entity.
Please click on the region the the Reporting Entity (law firm, real estate agency, fund, etc.) you are transacting with is based in:
TABLE OF CONTENTS
- New Zealand AML: Summary
- Australian AML: Summary
Australian AML: Summary
All Australian reporting entities are legally obligated to identify the true beneficial owners of their customers. A beneficial owner is an individual who ultimately owns or controls an entity such as a company, trust or partnership.
The identity of true beneficial owners can be kept anonymous to the public by having non-beneficially held shares, shares which are held on behalf of another entity/individual.
What does holding shares on behalf of another entity or individual mean?
If an individual or entity is holding shares on behalf of another individual or entity, their shares are non-beneficially held. This means that the shareholder does not benefit directly from the shares, and are holding them on behalf of someone else (the true owner).
The true owner receives the direct benefits from the shares, such as voting rights and rights to the dividends paid. Details of the true beneficial owner are not listed on the ASIC extract, which keeps the true owner’s identity anonymous from the public.
An example of this is a trustee who is holding shares for the beneficiaries of a Trust. The trustee is named as a shareholder on the ASIC, however the beneficiaries of the Trust are the individuals who receive the direct benefits from the shares.
What if my entity structure does have any of the above?
If you have the above shareholding arrangement in your entity structure, please click “YES” on our secure web form when prompted.
You will find that when you click “YES” on our web form that we will ask you whether the shares are held on behalf of a Trust or not.
If the shares are held on behalf of a Trust, click “YES”. You will be asked to upload a copy of your Trust Deed and any amendment which has been certified within the past two years. Please see the certification guidelines here.
What if my entity structure does not have any of the above?
If the above shareholding arrangements are not applicable to you, please click “NO” on our secure web form when prompted.