The person who is the true owner of property and the rights attaching thereto may, for various reasons, including the wish to remain anonymous, allow some other person to be registered as owner or. where applicable, hold the title deeds on the express or impfied understanding that that other person is owner in name only and is acting as a trustee for the true owner. The latter is referred to as the beneficial owner. This frequently occurs in share transactions where the registered holder of the shares is acting as a nominee for the true shareholder, who is not disclosed in the register as a company need take no notice of trusts regarding title. The Companies Act 1967, however, requires that the identity of anyone holding directly, or by nominee, more than 10 per cent of the equity capital be made known in the annual report.
Reference: The Penguin Business Dictionary, 3rd edt.
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