Do you know how to define a beneficial owner with HSBC banks?

BANK ACCOUNT

2016-11-08

We distinguish two distinct types of beneficial owner, the first one being in relation to a corporation, and the second one in relation to a trust.

1.       In relation to a corporation, it means that it is an individual who:

          Owns or controls, directly or indirectly (through a trust or bearer shares holding), not less than 10% of the issued share capital of the corporation

*Bearer shares = someone who holds a physical stock certificate, but is not registered to any authority or to the company – get dividends when the bearer shares present a physical coupon to the company

          Directly or indirectly, entitled to exercise or control the exercise of not less than 10% of the voting rights at general meeting of the corporation

          Exercises ultimate control over the management of corporation

 

2.       In relation to a trust, it means that it is an individual who:

          Is entitled to a vested interest – right of ownership, possession and use – in not less than 10% of the capital of the trust property, whether the interest is in possession or in the remainder or reversion and whether it is defeasible or not

          The settler of the trust

          A protector or enforcer of the trust

          An individual who has ultimate control over the trust

Hope this will help you to understand better this legal jargon, which might be really useful for you to distinguish the diverse capital owners present in your company!

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