Issue of shares in favour of a Trust

Dear All,

Can anyone explain me whether a company can issue shares to a trust in the name of trust?

Thanks in advance........................

Replies (9)

Individuals or corporations that are investing in their capacity as trustees of a trust must register their investment in their own individual or corporate name. They may include as part of the registered name reference to the capacity in which they are acting such as "as trustees of the ABC Trust". However the persons in whose name the shares are registered will be the only persons recognised as the registered owners.

Thanks Jyotsna

Please also tell me who will be the beneficial owner, beneficiaries of trust or the trustee who is registered as shareholder.

 

Originally posted by : Preeti Jain

Dear All,

Can anyone explain me whether a company can issue shares to a trust in the name of trust?

Thanks in advance........................

 

Shares can be issued to a trust in the name of trust and in that case the concerned trust and not the trustees or beneficiaries is considered as the shareholder.

 

In our company we have a trust viz ESOP Trust for our Employee Stock Options Plan and when the vesting of ESOP happens, we allots the share to our ESOP Trust after receiving the money who will in turn transfer the shares to our employees when they exercise their options and pays necessary amount to the ESOP Trust. 

Thanks Syam for your kind reply............

 

 

Dear Friend

 

 

 

 

 

 

Society/Trust as a member

 

 

 

Department Clarification- A society registered under the Society Registration Act, 1860 should not be deemed to be a ‘body corporate’ within the meaning of the section 2(7) of the Companies Act, although such a society can be treated as a ‘person’ having separate legal entity apart from the members constituting it and thereby capable of being a member of a company under section 41(2) of the Companies Act, 1956. [Circular Letter, dated-24-11-1962]

 

 

 

Shares belonging to society held in the name of trustee simpliciter

 

 

 

Department Clarification-In 1957 the Department of Company Affairs was advised that the shares in the company, being the property of a charitable trust, can be held in the name of the trustee. (Extracts from Department’sFile No. 1(43)-PT/67)

 

 

 

Regards

Thanks Ajay sir  for circular.

Thanks dear..................

Thanks sir...............

Dear Sir

 

Can Private limited Company issue and allot shares to religous trust ?

i.. e  can any religous trust be shareholders of private limited Company ?

Thanks

Vasant Patel

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 07 October 2026
Article Trainee/ CMA Trainee

RMA And Associates LLP

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 01 October 2026
Articled Assistant

KPSN & Associates LLP

Chennai

CA Inter

View Details
Company
08 October 2026
Account Executive

Elite Taxation

New Delhi

CA Foundation

View Details
Company
13 October 2026
Accountant

Zerdi & Co. Chartered Accountants

Pune

B.Com

View Details
Company
ARTICLESHIP 28 September 2026
Junior Accountant

J S P M & Associates LLP

Pune

B.Com

View Details
Company
30 September 2026
Senior Accounts Executive

Codeboard Technology

Chennai

MBA

View Details
Company
26 September 2026
Chartered Accountant

pushpganga ventures

Pune

CA

View Details
Company
15 October 2026
Senior Accountant

Continental Belting Pvt Ltd

Mumbai

B.Com

View Details