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  1. #1

    Default Becoming a shareholder in a company without showing up on the records

    It's a long story but........

    I am looking at becoming a share holder in a company, however, I don't want to appear on the company directors / shareholder details, is there a way of doing this?

    maybe set up a trust and then that trust owns my share of the company? can this be traced though?
    Last edited by Crookie; 22-11-2015 at 10:52 PM.

  2. #2
    Join Date
    May 2007
    Location
    Hamilton
    Posts
    3,586

    Default

    Hi,

    Director - no. If you are a director, then you will be shown on the companies office register.

    Shareholder - yes. Quite often an accountant, lawyer or their Trustee companies own share's on your or your Trusts behalf. This is called a Bare Trust, and is relatively simple.

    Your idea, of forming a Trust and the Trust being the shareholder generally doesn't work. For example if you are a Trustee of the Trust or a shareholder / director of the corporate trustee, then you will still be linked.

    Ross
    More Profit from Property? TEACH ME MORE
    Ross Barnett - Coombe Smith Property Accountants
    Proud to give the best property advice for over 13 years.

  3. #3

    Default

    thanks Rosco, so in the example of where a newly formed company (for which I will own 1/5th) purchases a property I should nominate my accountant or lawyer to be the owner of my shares?

  4. #4
    Join Date
    May 2007
    Location
    Hamilton
    Posts
    3,586

    Default

    Talk to your lawyer.

    Not nominating.

    They just own the shares on your behalf.

    Also get advice about shareholder agreement and especially your ability to appoint a director, because under normal rules you wouldn't be able to, as you don't own 51%.

    Ross
    More Profit from Property? TEACH ME MORE
    Ross Barnett - Coombe Smith Property Accountants
    Proud to give the best property advice for over 13 years.

  5. #5
    Join Date
    Dec 2010
    Location
    Cambridge, NZ
    Posts
    1,375

    Default

    Best bet is a trust in which the trustee is one of your lawyer's trustee companies, of which they will have lots and would probably incorporate one specially just to be the trustee. No one will get much information out of (to use an example from my firm) Carter Atmore Trustees No.15 Limited.

    However this does leave the question of how this company is to be run. I guess you could ask someone to be a director on the understanding they would do what you told them. In law, you would be deemed a director if things went wrong, but you wouldn't be on the companies office register in the meantime. The constitution of the company would have to allow your shareholding to appoint a director, and for that director to vote in the best interests of the shareholder that appointed them. The person agreeing to be a director would rack up some liability - being a director is not risk free - but I suppose that would be their problem not yours.


 

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