Security Trust Services
Share Warehousing
A Corporate Entity may opt to allocate a percentage of its shares to specific employees or beneficiaries.
In such instances, a Trustee is typically designated to hold the interest in the allocated shares for the benefit of the identified recipients. These shares hold an equal standing in all aspects, mirroring the characteristics of all other shares within the Company’s capital.
Who needs this?
Do you want to give shares to some of your employees to enhance performance, satisfaction and commitment? Are you seeking to give employees a sense of ownership under certain terms and conditions?
This arrangement might be for you!
BENEFITS
- Security and Custody: A trustee ensures the secure custody of shares held in a warehousing arrangement, safeguarding them from loss, theft, or unauthorized transactions. This provides confidence to shareholders that their investments are held in a trustworthy and protected environment.
- Facilitates Efficient Trading: By centralizing share ownership with a trustee, the trading process becomes more streamlined. Shareholders can buy and sell their interests without the need for physical share certificates, making transactions more efficient and reducing administrative complexities.
- Corporate Governance Oversight: Trustees play a crucial role in overseeing corporate governance matters related to the shares. This includes voting on behalf of shareholders during company meetings, ensuring that their interests are represented in decision-making processes.
