How does a nominee (beneficial) shareholder establish status and become registered?
Under Article 22 of the Third Judicial Interpretation on the Company Law the claimant must prove lawful subscription or payment of capital, or acquisition by transfer or succession without breaching mandatory provisions. Article 24 provides that a nominee arrangement is valid absent statutory grounds of invalidity, and a nominee cannot rely on the register to deny the beneficial owner’s rights. Disclosure and registration require the consent of more than half of the other shareholders.
