Document background
The Entrusted Shareholding Agreement is commonly used in Singapore when there is a need to separate legal and beneficial ownership of shares. This arrangement may be necessary for various reasons, including regulatory compliance, business structuring, or family wealth planning. The agreement explicitly defines the relationship between the nominee shareholder and beneficial owner, outlining voting rights, dividend distributions, and other shareholder privileges. Under Singapore law, such arrangements must be properly documented to ensure transparency and compliance with corporate governance requirements, including those set by the Monetary Authority of Singapore (MAS) and the Accounting and Corporate Regulatory Authority (ACRA).
