If the nominee shareholding agreement cannot be found, can the equity still be recovered?
It is very difficult but not impossible. Without a written agreement, reliance must be placed on an indirect chain of evidence to prove the nominee shareholding relationship: capital contribution records (records of the capital you remitted to the nominee), dividend records (records of dividends the nominee remitted to you), evidence of participation in management (records of your attendance at shareholders’ meetings and participation in decision-making), and witness testimony (other shareholders confirming that you are the actual investor). Where a complete chain of evidence is formed, the court may find the nominee shareholding relationship established; where the chain of evidence is incomplete, the risk is extremely high.
