2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16
Beneficiary is a concept that is often used in various areas of offshore business. What does it mean?
A beneficiary is a person who receives benefits, profits, income from a business. This is the name of the final recipients of the payment. The meaning may vary depending on the situation.
Company Ownership
Most often, when opening enterprises, shareholders, directors, etc. are registered, but the names of the real owners remain unspoken. In this case, the beneficiary is the person who is actually the owner and receives benefits and profits from the activities of the enterprise. This role can be played by an individual who, through participation in other companies or directly controls the shares of the enterprise. In this case, legal ownership can be assigned to other people or companies. Information about beneficiaries is confidential, provided exclusively to the bank or registered agent.
Through the use of nominee directors and shareholders in offshore companies, it is often hidden who is the ultimate beneficiary. This scheme is most often concluded using a nominal agreement or a declaration of trust. Occasionally a trust deed is used.
SoThus, the chain of ownership, including beneficiaries, is extremely rarely made public.
Bank account ownership
In this case, the beneficiary is the owner of the bank account who has control over the assets or funds in that account. This person can indirectly or directly manage finances. Moreover, the concept applies exclusively to persons who have full control over these funds, even if the beneficiary does not directly perform any operations, but they pass on his instructions. When opening an account, credit institutions always ask for information about the ultimate beneficiaries.
Trust management
In this case, the beneficiary is a person who receives income from property transferred to trust management or given for use to third parties.
Insurance
In this case, the term is used in relation to the person who will receive the sum insured. If a person is insured in case of death, any other person can be the primary (or conditional) beneficiary.
Legacy
The beneficiary is the heir in accordance with the will.
Renting or renting out property
The term applies to an individual who receives rent or rent.
Letter of credit
If the money is issued under a letter of credit, the beneficiary of a documentary letter of credit is the person in whose name the bank-the issuer opens it.
Opportunities and rights of beneficiaries
If the beneficiary owns the shares of the enterprise, he has the right to transfer his ownership rights to another person. The ultimate owner takes part in resolving issues related to the authorized capital. Also, the beneficiary has an indirect right to vote at shareholders' meetings. The owner can take part in the selection of the board of the company.
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Principal and beneficiary - parties to the bank guarantee
Any action in the financial sector involves the presence of two or more parties. And a bank guarantee (BG) in the field of risk insurance is no exception. A financial and credit organization operates here with a contractor (principal) on the one hand, and a customer (beneficiary) on the other. Who are the beneficiary and the principal in a bank guarantee, and who has what rights and obligations? Let's try to figure it out
