Document background
The Entrusted Shareholding Agreement is a crucial document used in Hong Kong when establishing nominee shareholding arrangements, commonly employed for legitimate business planning, confidentiality requirements, or corporate structuring purposes. This agreement is particularly relevant in situations where legal ownership needs to be separated from beneficial ownership, such as in international business structures, family wealth planning, or corporate reorganizations. The document comprehensively addresses the relationship between the nominee shareholder and the beneficial owner, ensuring compliance with Hong Kong's regulatory requirements, including the Companies Ordinance, Securities and Futures Ordinance, and anti-money laundering regulations. It provides detailed mechanisms for exercising shareholder rights, handling corporate actions, and managing the eventual transfer or termination of the arrangement.
