Declaration Of Trust Nominee Shareholder Template for Nigeria

The Declaration of Trust Nominee Shareholder agreement is essential in Nigerian corporate structures where legal and beneficial ownership of shares need to be separated. This arrangement is commonly used in situations involving foreign investment, corporate restructuring, or strategic business arrangements. The document is drafted in compliance with Nigerian law, particularly the Companies and Allied Matters Act (CAMA) 2020, and includes crucial details about share ownership, voting rights, dividend entitlements, and the obligations of both nominee and beneficial owner. It's particularly important in scenarios where companies need to maintain specific ownership structures while ensuring transparency with regulatory authorities. The document must address both local regulatory requirements and practical business needs, including provisions for proper corporate governance and compliance with anti-money laundering regulations.

1. Parties: Identification of the Trustee (Nominee Shareholder) and the Beneficiary (Beneficial Owner), including full legal names, addresses, and registration details if corporate entities

2. Background: Context of the arrangement, including details of the company whose shares are held in trust, and the circumstance leading to the nominee arrangement

3. Definitions: Key terms used throughout the document, including 'Shares', 'Company', 'Trust Property', 'Dividends', and other relevant terms

4. Declaration of Trust: Clear statement that the Nominee holds the shares as trustee for the Beneficiary

5. Trust Property: Detailed description of the shares held in trust, including number, class, and nominal value

6. Nominee's Obligations: Comprehensive list of the Nominee's duties, including voting rights, dividend handling, and record-keeping requirements

7. Beneficiary's Rights: Outline of the Beneficial Owner's rights regarding the shares, including right to dividends and voting instructions

8. Dealing with Trust Property: Provisions regarding sale, transfer, or other dealings with the shares

9. Termination: Circumstances and process for terminating the trust arrangement

10. Governing Law and Jurisdiction: Specification that Nigerian law governs the agreement and Nigerian courts have jurisdiction