Can a Trust hold shares under Companies Act 2013?

Can trust hold shares in a company as per Companies Act 2013?

Trust. A trust which has not been incorporated cannot be treated as a person, hence shares attained by a trust cannot be registered in its name. … Hence, a registered trust or co-operative society can become a shareholder in a company.

Can a trust own shares in a company?

A trust cannot own shares in a company because the law says a trust is not a separate legal person. … Even so, the trustee of a trust, in his, her or its capacity as trustee, is capable of owning shares and other property – see next question.

Can shares be held in trust?

A common use of purpose trusts is to hold the shares in a private trust company. Some larger families prefer to establish their own trustee company in order to manage the family’s trusts rather than using a commercial provider.

Can trust hold shares in a company India?

Technically, a trust cannot own shares in a company as it is not a separate legal entity.

Can a discretionary trust hold shares?

The most common type of trust which people will use to hold their shares are ‘discretionary trusts’. … Discretionary trusts allow the trustee to have discretion in how they distribute trust income between the beneficiaries.

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Can you hold shares on behalf of someone else?

If you are holding shares for the benefit of another person or group, these shares are not beneficially held. Instead, you hold them on behalf of someone else. For example, since a trust cannot own company shares, a trustee may be listed as the legal owner and hold the shares on behalf of the trust.

Can a company hold shares in another company?

Can a company hold shares in another company? A limited company shareholder can be an individual person or some kind of business entity, like another company, an LLP, an organisation, etc. Non-human shareholders are referred to as ‘corporate shareholders’.

Can a trustee be an ultimate holding company?

On its face, where a trustee company holds 100% of the shares in another company, and the trustee company itself is not a subsidiary of another company, a trustee company meets this test and is an ultimate holding company.

Can a trust be a company?

A trust is not a separate legal entity. A trustee may be an individual or a company. The trustee is legally liable for the debts of the trust and may use its assets to meet those debts.