Document background
The Entrusted Shareholding Agreement is commonly used in Belgian business practice when there is a need to separate legal and beneficial ownership of shares for legitimate business, administrative, or strategic purposes. This arrangement might be employed in various scenarios, such as implementing employee share schemes, facilitating corporate restructuring, or managing family wealth. The agreement must carefully navigate Belgian civil law requirements, as Belgium does not recognize common law trusts. The document establishes the fiduciary relationship between the Entrusted Shareholder and the Beneficial Owner, detailing their respective rights and obligations while ensuring compliance with Belgian corporate law, financial regulations, and anti-money laundering requirements. It is particularly important that the agreement explicitly addresses the exercise of shareholder rights, dividend handling, and voting procedures to prevent any ambiguity under Belgian law.
