The Act retains the overarching principle that one person may hold a share as nominee on behalf of another provided that the Memorandum of Incorporation (“MOI”) of the company does not expressly prohibit this conduct. As the Act (in section 37(9)) also retains the concept that the registered shareholder is the only recognised person who can exercise voting rights in respect of such shares, it is imperative that the beneficial shareholder concludes a nominee agreement with the nominee that will regulate in detail the basis upon which the nominee will hold and vote the shares and also how the nominee will deal with the dividends paid out in respect thereof.
Posted on: Thu, 25 Jul 2013 07:22:10 +0000
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