| The holding of subscriber shares in trust from the outset | The 'subscribers' are the proposed initial shareholders of the company who will sign the memorandum of association. The 'subscriber shares' are the shares which the subscribers indicate, in the memorandum of association, that they agree to take.
Shares, like any other property, may be held in trust. This means that the legal owner (i.e. in the case of shares, the person whose name appears as the owner of the shares in the Register of Members) holds them in trust for the beneficial owner/s. This is often done in order to keep the beneficial owner's details off the Register of Members and therefore secret. (Under section 356(1) of the Companies Act 1985, every company has an obligation to keep its Register of Members open for inspection by the public, upon the payment of such fee as may be prescribed.) It is prudent for such trusts to be documented so as to protect the interests of the beneficiary.
You should only select 'yes', if the shares are to be held in trust from the outset (i.e. from the moment the company is registered). This would not include a case where the shares are to be held absolutely (as opposed to being held in trust) by a subscriber for a period (no matter how short) after the company is registered and subsequently the shares are to be held in trust for someone else. |
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