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hold a share upon a trust

English translation: to hold a share as part of a trust fund

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GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)
English term or phrase:hold a share upon a trust
English translation:to hold a share as part of a trust fund
Entered by: Marek Buchtel
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11:12 Feb 14, 2005
English to English translations [PRO]
Law/Patents - Law: Contract(s) / Articles of Incorporation
English term or phrase: hold a share upon a trust
I am translating the Articles of a company (based on the IBC Act of the British Virgin Islands).

Please, can anyone explain what the phrase "holding any share upon any trust" means in the following paragraph? In this case, does "trust" refer to an "investment fund", or "duty of looking after money, property etc.", or something else?
Could you explain or rephrase this part of the sentence (so that I can understand :-))

"Except as required by law, no person shall be recognized by the Company as holding any share upon any trust, and the Company shall not be bound by or be compelled in any way to recognize (even when having notice thereof) any equitable, contingent, future or partial interest in any share or any interest in any fractional part of a share or (except only as by these Regulations or by law otherwise provided) any other rights in respect of any share except an absolute
right to the entirety thereof by the registered holder."
Marek Buchtel
Czech Republic
Local time: 17:47
to hold a share as part of a trust fund
Explanation:
Shares can be legally owned by a trust fund, which is be set up to give out money as the trustees decide to the beneficiaries of the trust. This is often done to avoid taxes, such as inheritance tax. This regulation says that they require shares to be held by the "beneficial owner" (the person who really controls them) and not by some intermediary trust.

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Note added at 7 mins (2005-02-14 11:20:14 GMT)
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In a family trust, the beneficiaries of the trust will be family members, and the trustees may be also be family members, or solicitors appointed by the family. In this case, the \"real\" owners of the assets are the family members, but the \"apparent\" owner is the trust fund.
Selected response from:

David Knowles
Local time: 16:47
Grading comment
Thank you very much, both of you. Your explanations were very helpful!
4 KudoZ points were awarded for this answer

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Summary of answers provided
5 +4to hold a share as part of a trust fund
David Knowles
5se detail below
Lawyer-Linguist


  

Answers


6 mins   confidence: Answerer confidence 5/5 peer agreement (net): +4
to hold a share as part of a trust fund


Explanation:
Shares can be legally owned by a trust fund, which is be set up to give out money as the trustees decide to the beneficiaries of the trust. This is often done to avoid taxes, such as inheritance tax. This regulation says that they require shares to be held by the "beneficial owner" (the person who really controls them) and not by some intermediary trust.

--------------------------------------------------
Note added at 7 mins (2005-02-14 11:20:14 GMT)
--------------------------------------------------

In a family trust, the beneficiaries of the trust will be family members, and the trustees may be also be family members, or solicitors appointed by the family. In this case, the \"real\" owners of the assets are the family members, but the \"apparent\" owner is the trust fund.

David Knowles
Local time: 16:47
Specializes in field
Native speaker of: Native in EnglishEnglish
PRO pts in category: 16
Grading comment
Thank you very much, both of you. Your explanations were very helpful!

Peer comments on this answer (and responses from the answerer)
agree  Lawyer-Linguist: typing at the same time David...:-)
6 mins
  -> That's the trouble with long considered answers!

agree  Charlesp
8 mins
  -> Thanks Charles

agree  Aisha Maniar
8 mins
  -> Thanks Aisha

agree  Jan Zeman: Perfect, meaning of the word 'trust' wasn't clear from the context
3 hrs
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11 mins   confidence: Answerer confidence 5/5
se detail below


Explanation:
Shareholders of a company can include individuals, other companies or trusts.

In the case of a trust the shares vest in the trustee who holds and administers such shares according to the trust deed for the trust beneficiaries.

Why put shares in a trust? Number of reasons - tax, estate planning, to try and divest your personal estate of shares pending bankruptcy or just because you beleive a trustee would administer things better - see typical clause below


"And whereas, with a view to the safe and competent management of the Corporation, in the interest of all the stockholders thereof, the Subscribers are desirous of creating a trust in the following manner;

Now, it is hereby agreed and declared as follows:

1. The Subscribers shall endorse, assign, and deliver to the Trustee the certificates representing the shares of stock owned by them respectively, and shall do all things necessary for the transfer of their respective shares to the Trustee on the books of the Corporation."

Shares are held UPON TRUST or commonly the wording is IN TRUST by the trustee

Thes articles of association seek to exclude that oprion except where regulated otherwise by law.

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Note added at 13 mins (2005-02-14 11:25:56 GMT)
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spelling !!!!!!!!!

see detail
believe
these articles
option etc etc, !

Lawyer-Linguist
Portugal
Local time: 16:47
Specializes in field
Native speaker of: English
PRO pts in category: 27
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