Beneficial Ownership definition: Copy, customize, and use instantly
Introduction
The term "Beneficial Ownership" refers to the rights and interests of individuals or entities that ultimately own or control an asset, even if the asset is legally held in another name. This concept is critical in ensuring transparency in ownership structures, supporting compliance with financial regulations, and preventing illicit activities such as money laundering or tax evasion.
Below are various examples of how "Beneficial Ownership" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Beneficial Ownership" as it relates to corporate ownership
This definition connects "Beneficial Ownership" to the context of corporate ownership and control.
"Beneficial Ownership" means the natural person(s) who, directly or indirectly, own or control a company or entity through holding a sufficient percentage of voting shares, or through other means such as control over management or business decisions.
Definition of "Beneficial Ownership" as it relates to financial institutions
This definition links "Beneficial Ownership" to its application in financial services and regulatory compliance.
"Beneficial Ownership" refers to the individual(s) who ultimately own or control a customer of a financial institution, including through an entity, and who are required to be identified for purposes of compliance with anti-money laundering and Know Your Customer regulations.
Definition of "Beneficial Ownership" as it relates to real estate transactions
This definition applies "Beneficial Ownership" to real estate transactions and property ownership transparency.
"Beneficial Ownership" means the person(s) or entity(ies) who have the ultimate control or benefit of the ownership of a real property, regardless of the name in which the property is held, typically for tax or regulatory purposes.
Definition of "Beneficial Ownership" as it relates to trusts
This definition ties "Beneficial Ownership" to trusts and their beneficiaries.
"Beneficial Ownership" refers to the individual or entity who ultimately enjoys the benefits of a trust, including receiving income or assets, even if they are not the legal owner of the trust assets.
Definition of "Beneficial Ownership" as it relates to securities
This definition connects "Beneficial Ownership" to the holding of securities and investment interests.
"Beneficial Ownership" refers to the person or entity that holds the rights to the benefits of securities, including dividends or voting rights, even though the securities are legally held by another party.
Definition of "Beneficial Ownership" in the context of private equity
This definition ties "Beneficial Ownership" to private equity investments.
"Beneficial Ownership" means the natural person(s) who ultimately control or have the economic benefit of shares or interests in a private equity fund, even if those interests are legally held by an intermediary or nominee.
Definition of "Beneficial Ownership" in a partnership
This definition applies "Beneficial Ownership" to partnerships and their profit-sharing arrangements.
"Beneficial Ownership" refers to the individual(s) who have the right to the profits, distributions, and ultimate control of a partnership, even if the legal ownership is vested in another party.
Definition of "Beneficial Ownership" as it relates to a holding company
This definition connects "Beneficial Ownership" to a holding company structure.
"Beneficial Ownership" means the person or group who, through ownership or control of shares or assets in a holding company, ultimately control or benefit from the income, assets, or decisions of subsidiary companies.
Definition of "Beneficial Ownership" in cross-border transactions
This definition applies "Beneficial Ownership" to cross-border and international transactions.
"Beneficial Ownership" refers to the individual or entity that ultimately owns or controls assets in cross-border transactions, regardless of the legal holder, for the purpose of transparency and compliance with international regulations.
Definition of "Beneficial Ownership" in a corporate trust
This definition ties "Beneficial Ownership" to trust structures used within corporate settings.
"Beneficial Ownership" means the individual or entity who has the right to receive the benefits or profits of a trust established by a corporation, despite the trust's legal ownership being held by a trustee.
Definition of "Beneficial Ownership" in collective investment schemes
This definition connects "Beneficial Ownership" to collective investment schemes such as mutual funds or REITs.
"Beneficial Ownership" refers to the individual or entity that ultimately benefits from a collective investment scheme, including receiving dividends or profits, even if the legal ownership is in the name of a fund manager or trustee.
Definition of "Beneficial Ownership" in asset management
This definition applies "Beneficial Ownership" to asset management situations.
"Beneficial Ownership" refers to the person or entity that has the right to benefit from the ownership of assets managed by an asset manager, even though the asset manager holds the legal title.
Definition of "Beneficial Ownership" in an inheritance context
This definition connects "Beneficial Ownership" to inherited assets.
"Beneficial Ownership" means the individual(s) who, through inheritance, gain the ultimate right to benefit from an asset, even if the asset is initially held in the name of an estate or trustee.
Definition of "Beneficial Ownership" in cryptocurrency holdings
This definition applies "Beneficial Ownership" to digital assets like cryptocurrency.
"Beneficial Ownership" refers to the individual or entity who holds the ultimate control or right to benefit from cryptocurrency holdings, even if the cryptocurrency is held in a digital wallet or exchange under another party's name.
Definition of "Beneficial Ownership" in a joint venture
This definition ties "Beneficial Ownership" to a joint venture agreement.
"Beneficial Ownership" means the party(ies) in a joint venture who ultimately control or receive the benefits from the venture’s assets, profits, or decision-making authority, even if the legal ownership is held by a separate entity.
Definition of "Beneficial Ownership" in offshore entities
This definition connects "Beneficial Ownership" to offshore accounts or entities.
"Beneficial Ownership" refers to the individual(s) who ultimately control or benefit from the ownership of assets held by an offshore entity or trust, regardless of the legal name under which the assets are registered.
Definition of "Beneficial Ownership" in debt financing
This definition links "Beneficial Ownership" to debt instruments or financing agreements.
"Beneficial Ownership" refers to the person or entity who has the right to the benefits of a debt instrument, such as interest payments or security interests, even if the legal holder is a trustee or nominee.
Definition of "Beneficial Ownership" in real estate investment trusts (REITs)
This definition applies "Beneficial Ownership" to real estate investment structures.
"Beneficial Ownership" means the individual(s) who ultimately control or receive the economic benefits from the ownership of real estate held within a REIT, even if the legal title is held by a trustee or fund manager.
Definition of "Beneficial Ownership" in charitable foundations
This definition ties "Beneficial Ownership" to charitable foundations and their beneficiaries.
"Beneficial Ownership" refers to the individuals or groups who ultimately benefit from the assets or income generated by a charitable foundation, even if the legal title is held by the foundation's trustees.
Definition of "Beneficial Ownership" in stock options
This definition connects "Beneficial Ownership" to stock options and equity compensation.
"Beneficial Ownership" refers to the person or entity who holds the rights to the benefits of stock options, including the right to exercise and profit from those options, even if the legal ownership is held by another party or trust.
Definition of "Beneficial Ownership" in employee stock ownership plans (ESOPs)
This definition applies "Beneficial Ownership" to employee ownership plans.
"Beneficial Ownership" means the employees or individuals who ultimately benefit from stock ownership in a company through an ESOP, even if the legal ownership is held by the ESOP trustee.
Definition of "Beneficial Ownership" in venture capital
This definition ties "Beneficial Ownership" to venture capital investments.
"Beneficial Ownership" refers to the investors or entities who ultimately own or control the benefits of equity in a startup or venture capital-backed company, even if the ownership is held in the name of a fund or investment vehicle.
Definition of "Beneficial Ownership" in a nominee shareholder structure
This definition links "Beneficial Ownership" to nominee shareholders.
"Beneficial Ownership" refers to the individual(s) who are the true owners and beneficiaries of shares held by a nominee shareholder, with the legal title being in the nominee’s name for purposes of confidentiality or administrative convenience.
Definition of "Beneficial Ownership" in the context of international business
This definition applies "Beneficial Ownership" to cross-border businesses and multinational corporations.
"Beneficial Ownership" means the person(s) or entity(ies) who ultimately control or benefit from the ownership of assets or operations in an international business arrangement, despite legal ownership being registered in another jurisdiction.
Definition of "Beneficial Ownership" in insurance policies
This definition applies "Beneficial Ownership" to insurance contracts.
"Beneficial Ownership" means the person or entity who ultimately benefits from the proceeds of an insurance policy, including claims payouts or policy dividends, even if the legal ownership is held by a third-party beneficiary.
Definition of "Beneficial Ownership" in a pension fund
This definition connects "Beneficial Ownership" to pension fund beneficiaries.
"Beneficial Ownership" refers to the individual(s) who are entitled to the benefits of a pension fund, such as retirement income or lump-sum payments, even though the legal ownership of the fund is held by a pension plan trustee.
Definition of "Beneficial Ownership" in a non-profit organization
This definition ties "Beneficial Ownership" to non-profit structures.
"Beneficial Ownership" means the individuals or groups who benefit from the activities or assets of a non-profit organization, even if the legal ownership and control are vested in a board of trustees.
Definition of "Beneficial Ownership" in franchise ownership
This definition connects "Beneficial Ownership" to franchise arrangements.
"Beneficial Ownership" refers to the individual or entity who ultimately controls the rights and benefits of a franchise, including profits and intellectual property rights, even if the franchise ownership is legally held by a third-party intermediary.
Definition of "Beneficial Ownership" in supply chain transactions
This definition applies "Beneficial Ownership" to supply chain management.
"Beneficial Ownership" refers to the entity or individual who ultimately controls or receives the benefits from goods in transit within the supply chain, even if the legal title is still held by an intermediary or vendor.
Definition of "Beneficial Ownership" in an online platform or marketplace
This definition ties "Beneficial Ownership" to online platforms or marketplace transactions.
"Beneficial Ownership" refers to the individual or entity who holds the rights to the benefits of goods or services transacted on an online platform or marketplace, including profits, royalties, or rights to resell, even if the platform legally holds the title.
Definition of "Beneficial Ownership" in structured finance transactions
This definition connects "Beneficial Ownership" to structured finance products.
"Beneficial Ownership" refers to the individual or entity who is entitled to the economic benefits of a structured finance product, such as mortgage-backed securities or collateralized debt obligations, despite the legal ownership being held by a trustee or SPV.
Definition of "Beneficial Ownership" in energy sector assets
This definition ties "Beneficial Ownership" to the energy sector.
"Beneficial Ownership" means the person or entity who controls or ultimately receives the benefits from energy assets, such as oil, gas, or renewable energy projects, even if the legal title is held by an operating entity or holding company.
Definition of "Beneficial Ownership" in government contracts
This definition connects "Beneficial Ownership" to government procurement contracts.
"Beneficial Ownership" refers to the individual(s) or entity(ies) who ultimately control or benefit from a government contract, such as through profit sharing, payment, or control over contract execution, even if the contract is legally registered under a separate entity.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.