Understanding the Nominee structure
Understanding the benefits of raising your new financing round through nominee structures:. Discover how the nominee structures simplifies investments and governance.
What is a Nominee structure?
A nominee structure is like having a trusted, legally-appointed representative for you and other investors in a company. This representative (called a nominee) acts on behalf of all investors, ensuring compliance with regulations and protecting your interests.
How does the nominee work?
Grouping: Multiple investors pool their investments under one regulated entity (the nominee).
Representation: The nominee appears on the company's official list of shareholders (called the cap table), simplifying administration while maintaining legal compliance.
Behind the Scenes: The nominee keeps detailed, auditable records of each investor's ownership, ensuring transparency and legal protection.
Communication: The company communicates with the nominee, who then passes information to all investors, maintaining confidentiality and regulatory compliance.
Decisions: For company votes, the nominee collects investors' opinions and votes on their behalf, adhering to legal requirements and fiduciary duties.
Think of it as a secure, legally-compliant group chat where a professional summarizes everyone's thoughts to communicate with the company, ensuring all legal and regulatory requirements are met.
Legal Assurance: The nominee structure operates under strict regulatory oversight, ensuring that your investments are managed in compliance with all applicable laws and regulations. The nominee has a fiduciary duty to act in the best interests of all investors it represents.
Why use a Nominee structure?
Nominee structures simplify investments for both companies and investors, all while maintaining legal compliance and protecting your interests.
Nominee structure - company benefits
Cleaner Cap Table: Simplify your ownership list with one legally-recognized entry instead of many.
Less Paperwork: Communicate with one regulated entity instead of multiple investors, reducing administrative burden while ensuring compliance.
Easier Fundraising: Attract future investors with a streamlined, legally-sound ownership structure.
Simpler Decision-Making: Coordinate votes through one channel for faster, legally-compliant results.
Company FAQs
Nominee structure - investor benefits
Privacy: Keep your investment details confidential while still complying with all legal requirements.
Easier Selling: Transfer your shares with less hassle when you want to exit, all within a legally-sound framework.
Simplified Taxes: Potentially easier tax reporting, especially for global investments, while ensuring full tax compliance.
Professional Management: Benefit from experts handling complex legal and administrative tasks, ensuring compliance with all regulations.
Investor FAQs
Last updated