15.1 Disclosure Requirements
S 56 applies to all types of profit companies or a public company.
The person who is registered as the holder of a security in a public company and is not the holder of the beneficial interest in the securities the registered holder must disclose the identity of the person on whose behalf the security is held. The number and class of securities held for each such person with the beneficial interest and the extent of each such beneficial interest must be disclosed to the company in writing within five (5) days after the end of every month during which a change has occurred of such information.
If the company knows who or has reasonable cause to believe that securities are held by one person for the beneficial interest of another person, the company may request in writing to either of those persons to confirm or deny that fact and provide the necessary particulars. Such information must be provided by no later than 10 business days after receipt of the notice.
S 56(5) and S 56(6) apply to every type of company including private companies.
S56(9) provides that the holder of a beneficial interest in a share may only vote to the extent that;
(a) The beneficial interest includes the right to vote on the matter
(b) The person holds a proxy appointment in respect to that matter from the registered holder of those securities or the person’s name is on the company’s register of disclosures.
The beneficial holder of a security may demand a proxy appointment in certain instances.
Where you come across these kinds of arrangements it’s in the interests of all concerned to have a proper agreement.
The problem with this kind of situation is that the holder of the beneficial interest in the shares wants to hide his or her holding so the chances are that they are not going to comply with these provisions.