Bermuda Trust (Jersey) Ltd. v Valibhai [2001] JLR 254 (25 April 2001)

Bermuda Trust (Jersey) Ltd. v Valibhai [2001] JLR 254 (25 April 2001)

If a company is incorporated and shares are registered in the names of others solely to conceal the true beneficial owner, the person who instigated and paid for the incorporation is the beneficial owner of those shares.

Citation
[2001] JLR 254
Parties
Applicant: Bermuda Trust (Jersey) Ltd.; Respondent: Valibhai
Jurisdiction
Jersey
Judgment Date
25 April 2001
Procedural Posture
Civil / Judgment
Outcome
judgment for applicant
Legal Topics
Beneficial Ownership, Unissued Shares, Company Incorporation, Concealment of Ownership
Company Law Trust Law Beneficial Ownership Unissued Shares Company Incorporation Concealment of Ownership

Case Brief

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Parties

Bermuda Trust (Jersey) Ltd.

Applicant

Valibhai

Respondent

Procedural Posture

Civil / Judgment

Legal Issues

  1. 1 Whether unissued shares registered in the names of others are beneficially owned by the person who instigated and paid for the company's incorporation when the intention was merely to conceal true beneficial ownership.

Ratio Decidendi

If a company is incorporated and shares are registered in the names of others solely to conceal the true beneficial owner, the person who instigated and paid for the incorporation is the beneficial owner of those shares.

Court Disposition

judgment for applicant

Orders

  • Declaration that the applicant is the beneficial owner of the shares in question.