Which of the following statements are FALSE? Select all that apply. A nominee shareholder may not be a company The ‘chain of corporate entities’ may be located in different jurisdictions or countries In Australia, a bearer share certificate can be used to transfer legal and beneficial ownership of an Australian company A shareholder of a company may hold shares beneficially or as nominee in Australia
Question
Which of the following statements are FALSE? Select all that apply. A nominee shareholder may not be a company The ‘chain of corporate entities’ may be located in different jurisdictions or countries In Australia, a bearer share certificate can be used to transfer legal and beneficial ownership of an Australian company A shareholder of a company may hold shares beneficially or as nominee in Australia
Solution
The following statements are FALSE:
- In Australia, a bearer share certificate can be used to transfer legal and beneficial ownership of an Australian company.
This is false because Australia has abolished the use of bearer shares. Bearer shares are unregistered shares that are owned by whoever physically holds the share certificate. Due to their potential misuse for illicit activities such as money laundering, many jurisdictions, including Australia, have abolished them.
- A nominee shareholder may not be a company.
This is false because a nominee shareholder can be a company. A nominee shareholder is a person or firm that is registered as the holder of shares on behalf of the beneficial owner of the shares. This can be an individual or a company.
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