Holding Shares as a Trustee
Learn how to manage shares held in trust and understand trustee arrangements
Overview
A trustee shareholding occurs when one party (the trustee) holds legal title to shares on behalf of another party (the beneficiary). The trustee manages the shares as a fiduciary, while the beneficiary enjoys the economic benefits (dividends, value appreciation) associated with the shares.
The platform allows you to record trustee relationships during share issuance or transfer, track legal and beneficial ownership separately, and automatically flag holdings for UBO (Ultimate Beneficial Owner) reporting when thresholds are met.
What you'll learn:
- How to set up trustee arrangements when issuing or transferring shares
- The difference between legal and beneficial ownership
- How the platform handles UBO reporting thresholds
- How trustee relationships are recorded and displayed
Understanding Trustee Shareholdings
Legal and Beneficial Ownership
In a trustee arrangement:
- Trustee: The legal owner of the shares, recorded in the company's register of members
- Beneficiary: The beneficial owner, entitled to the economic benefits of ownership but not holding legal title
Key Features
- Separate Recording: The platform records both the trustee (legal owner) and beneficiary (beneficial owner) separately
- Register of Members: The trustee appears as the member in the register
- Compliance Tracking: The beneficiary is stored for compliance and reporting purposes
- UBO Reporting: The platform automatically flags holdings for UBO reporting when thresholds are met
Tip
Trustee arrangements allow you to separate legal ownership (trustee) from beneficial ownership (beneficiary), which is important for compliance and reporting purposes.
Recording Trustee Relationships
You can set up trustee arrangements when issuing new shares or transferring existing shares.
During Share Issuance
When issuing shares, you can configure a trustee arrangement:
- Navigate to Shares and click Issue Shares
- Select the stakeholder who will be the beneficial owner
- In the Trustee Arrangement section, toggle "With Trustee" to enable trustee arrangements
- Select the trustee from your stakeholder list
- Complete the rest of the share issuance form
The platform will record:
- Legal Owner (Trustee): The trustee appears in the register of members
- Beneficial Owner: The beneficiary is recorded separately for compliance purposes
During Share Transfer
When transferring shares, you can also set up trustee arrangements:
- Navigate to the share certificate you want to transfer
- Click Transfer and select the new stakeholder
- If the new stakeholder will hold shares as a trustee, toggle "With Trustee"
- Select the beneficial owner for whom the trustee is holding the shares
- Complete the transfer
Tip
You can set up trustee arrangements both when issuing new shares and when transferring existing shares. This ensures accurate tracking of legal and beneficial ownership throughout the share lifecycle.
System Recognition and Recording
How the Platform Records Trustee Relationships
When you set up a trustee arrangement:
- Register of Members: The trustee is recorded as the legal owner in the company's register of members
- Beneficial Owner Tracking: The beneficiary is stored separately for compliance and reporting purposes
- Capital Structure: The trustee–beneficiary relationship is recorded in the company's capital structure
- Certificate Display: Share certificates show both the trustee (legal owner) and beneficiary (beneficial owner)
Viewing Trustee Relationships
You can view trustee relationships in several places:
- Share Certificate View: Shows both the trustee and beneficiary
- Stakeholder Profile: Displays shares held as trustee and shares held as beneficiary
- Cap Table: Indicates trustee arrangements with appropriate labels
- UBO Reports: Beneficial owners are included in UBO reporting when thresholds are met
UBO Threshold Handling
Automatic UBO Reporting
The platform automatically handles UBO (Ultimate Beneficial Owner) reporting thresholds:
- Threshold: Beneficial owners who hold 25% plus one share or more of the company's share capital must be reported
- Automatic Flagging: The platform automatically flags such holdings for UBO Register inclusion
- Compliance Preparation: Beneficial owner details are prepared for inclusion in the UBO Register and other relevant compliance filings
Important
The platform automatically flags beneficial owners who meet the UBO reporting threshold (25% plus one share or more). Ensure beneficiary information is accurate to maintain compliance with reporting requirements.
How UBO Thresholds Work
When a beneficiary's holding meets or exceeds the reporting threshold:
- The platform calculates the beneficial ownership percentage
- If the threshold is met (25% plus one share or more), the holding is automatically flagged
- Beneficial owner details are prepared for UBO Register inclusion
- The information is available for compliance filings and reporting
Practical Example
What Happens Next
After setting up a trustee arrangement:
- The trustee is recorded as the legal owner in the register of members
- The beneficiary is recorded separately for compliance purposes
- The trustee–beneficiary relationship is stored in the capital structure
- Share certificates display both the trustee and beneficiary
- UBO reporting is automatically handled if thresholds are met
- The relationship is visible in stakeholder profiles and the cap table
Next Steps
After setting up a trustee arrangement, you may need to: - Verify that both trustee and beneficiary are correctly recorded - Check that UBO reporting thresholds are being calculated correctly - Review share certificates to ensure they display the trustee relationship - Ensure beneficiary information is complete for compliance purposes - Monitor beneficial ownership percentages for UBO reporting requirements
Related Topics
- Issue Shares – Learn how to issue shares with trustee arrangements
- Transfer of Shares – Learn how to transfer shares with trustee arrangements
- Share Certificates – Understand how share certificates display trustee relationships
- Cap Table – View how trustee arrangements are shown in the cap table
- Stakeholders – Learn how to manage stakeholders who act as trustees or beneficiaries