Trust - a form of management of the company organization, which is very popular thanks to sophisticated and profitable system of taxation. At the heart of its creation on the relations between the founder and other members, which are confidential in nature. This structure consists of three parties involved. This Founder, The Trustee and the Beneficiary.
The first creates a company, a portion of its assets at the disposal of the owner. The second deals with the registration of the company, It manages its activities, performs trust agreement. He is obliged to arrange their work so, the company to bring a stable income. It must defend the legitimate interests of third parties to create a system.
The last in this system is the beneficiary. It can generate revenue from the sale of shares. He has the right to buy shares. Participates in the manual, adoption of specific solutions for the development and promotion of business areas. He is responsible for control over execution of the trust agreement. If there are contradictions, disputes with the rest of the circuit, can solve them in court. In other words, is one person or a group of shareholders, and which creates a trust fund.
Capacity and authority of the beneficiary
beneficiary Trust - this is the real owner of the company. All assets, the money belongs to him, not on paper, but in reality. This enables the present party system to have a real impact on the successful development of business. He is directly involved in the formation of the contract on execution of decisions.
Beneficiaries can become individuals. The concept of "Beneficial participant" is closely linked not only with the business sphere. It can be seen in the banking law, tax, trust, corporate documents. In each direction, it has a certain value, and performs specific functions.
If we are talking about the owner, it is meant the use of agreements to avoid double taxation. The concept refers to the owner of the banking sector, as well as international instruments, associated with this activity. The final formulation of the "controlling person" is related to the observance of human rights beneficiaries to obtain dividends from their ongoing financial transactions.
The main duties and rights of a third party trust relationship is:
– Providing the necessary information to the appropriate authorities on the work of the company and the payment of tax deductions;
– The possibility of free disposal of its stake in the business. It can be sold as part of, so all owned financial assets;
– The presence of law in obtaining part of the company's profit according to the trust deed requirements. A separate item prescribed specific amount in terms of money or dividends in the form of interest. Usually payments are made on a monthly basis.
In those cases,, when it comes to asset management, you need to very carefully examine the content of the contract. Provide for possible legal implications. There are a lot of problems, faced beneficiary of the trust. It can be:
– Intentional or unintentional concealment of the real situation in business development and profit;
– The use of questionable, illegal schemes to tax evasion;
– Frequent violations of trust agreement;
– Default under the observance of time limits and pre-agreed amount of dividends;
– Limitation of rights in decision-making and control of the company.
To prevent such errors, There shall be regular and strict control over the implementation of absolutely all the items of the contract. Insist on making the content of the agreement item on the penalties for non-compliance, avoidance of designated liabilities.
What is the difference between closed and open systems trust?
organization Trust It assumes different forms. It can be bare obligations, charity scheme, earmarked, fixed system. Often are protective structures, conclude agreements, the purpose of which is to protect the owners of assets. In the case of the founder of irrevocable agreements has the right to terminate them or regain the transferred property.
In practice there are often closed and open forms of relationship between the manager and the beneficiary. In the first beneficiary of the trust give full freedom to trusted parties in making investment character. In this case, they do not know anything about the existing system assets. The need for establishing such a structure arises in the case of, when there is a conflict of interest between the third party to the contract and the activities of the company.
The open form is used there, where the control is not limited in its actions on the part of the founder. In matters of property use. It has unlimited rights, that protect the interests of beneficiaries. Increase the cost of ownership of the company. This is the most common form of building trust system.
The correct choice is determined by the goals and objectives. It is necessary to clearly identify the alleged activities. Outline the scope of the relationship between all parties to the treaty. Set permissions, duties and responsibilities for non-fulfillment of the agreement. To conduct a comprehensive assessment of the potential risks.
In some cases, the most optimal way - is to create multiple circuits trusting relationship. For the development of the project - an investment option. Training - target structure. To protect its business interests of a protective system.
Whatever classification you have not used, In all cases priority should be to promote the interests of the real owners of the company, augmenting their income.