23 Feb Different types of Ownership found in the KYC Process
Below we have a short description of the main types of ownership you could come across at the time of performing diligence of a new or existing customer:
Bearer Shares: The ownership of the share is determined purely by the physical possession of a piece of paper of certificate.
Publicly Owned: A Public listed company is whose shares are traded on an official stock exchange and tend to be owned by Institutional and retails investor who would hold a small % of the equity.
Foundation: A foundation is a Non-profit organisation or charitable trust that has been created to receive or provide funding for charity purposes.
Trusts: A trust is a legally binding arrangement when a person (the settlor) transfers legal ownership of assets to certain chosen persons (trustees) to be held on trust for the benefit of persons named by the settlor (the beneficiaries).
Privately Held: Ownership is held by a small number of investors/individuals – Shares do not trade on public exchanges and are not issued through an Initial Public Offering (IPO).
Partnership: A legal form of business operation between two or more individuals who share management and profits.
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