Nominee shareholder is having another person appearing in the government record as the shareholder. The identity of real owner is hidden.
Many often, this is to fulfil the minimum requirement of having 2 sharehodlers. The benefit of the real shareholder can be protected by preparing Declaration of Trust and pre-signed share transfer documents. In case of necessity, the shares can be transferred back to real owner. The real owner is regarded as owning the shares from the very beginning. Not from the date of transfer back.
Many often, this is to fulfil the minimum requirement of having 2 sharehodlers. The benefit of the real shareholder can be protected by preparing Declaration of Trust and pre-signed share transfer documents. In case of necessity, the shares can be transferred back to real owner. The real owner is regarded as owning the shares from the very beginning. Not from the date of transfer back.