Author: Lucy Fergusson

UK – Intermediated securities: Who owns your shares?

The Law Commission's paper "Intermediated securities: who owns your shares?" focuses on the corporate governance issues created by the holding of securities through nominees and other intermediaries. This is now normal practice and has benefits in terms of the efficiency and cost of holding investments. However, it has consequences for corporate governance, since the beneficial owner of shares held through an intermediary does not have the same legal rights as a direct holder and may in practice be disenfranchised.