The beneficiary, as well as its synonyms - the beneficiary, the beneficiary - terms that can be heard not only in professional, but also in everyday speech. Let's get to know better these capacious concepts.
The beneficiary is the one who earns income
Beneficiary (French benefice - benefit, income) is called the entity that receives a particular income according to any contract or debt documentation. Although the beneficiary can be either a physical or legal addressee, the beneficial owner is always a private person.
Even if the trust agreement (trust agreement) is drawn up with the company, it is necessary to provide information about its owner - an individual. In this case, it must be the owner of all shares of the corporation or their overwhelming number, and also be the addressee of receipt of all income of the company.
In a more specific interpretation, the beneficiary is the owner of the property documents (real estate, business, other source of income), due to which he makes a profit. This is the name of the recipient of any cash payment.
Beneficiary Form
Let's look at narrower examples of who might be called the beneficiary:
- The true owner of any property transferred to the trust management of a legal or private person (lease, rental agreement), and receiving income from this. The beneficiary is also a citizen who has entrusted the use of his property to certain third parties in order to maximize income (transferring shares to a broker is an excellent example).
- An entity that benefits from a trust agreement (property trust agreement).
- A person receiving any payments under an insurance contract. The beneficiary here most often is the insured citizen himself. However, the option is not ruled out that his heir may also become a beneficiary (in the event of the death of this person).
- The owners of any property insured by another citizen in their favor are also beneficiaries. Sample: the lessee insures the leased property, but in the event of an insured event, compensation for damage will be addressed to the lessor.
- The beneficiary is also the person who receives interest on the storage of cash deposits in a particular bank.
Thus, beneficiaries are heirs, landlords, owners of bank accounts, actual owners of companies and documentary letters of credit, insured citizens (in the event of an insured event), persons who have left their property in trust.
Beneficiary Rights
The eligibility of the beneficiary is as follows:
- full disposal of his share in the company - sale, gift or refusal of it;
- control over the fulfillment of the management responsibilities agreed upon in the contract, up to the dismissal of the CEO of the corporation;
- Participation in the full weight of his vote in constituent and joint meetings;
- making a profit as part of its dividends.
The incognito beneficiary of a company, enterprise has the right:
- participate in the selection of leadership;
- Meet at shareholders meetings;
- alienate the company's shares to third parties;
- to form authorized capital;
- choose the direction of the corporation.
The beneficiary may apply to the court if his legal rights are not respected:
- in case of ignoring the terms of the agreement concluded with him;
- in case of illegal or unlicensed activities of the company;
- belittling his control rights;
- concealment of infringement of his personal interests;
- other circumstances that do not allow him to make his full profit.
Beneficiary Information
It is authorized to disclose information about its ultimate beneficiaries:
- Rosfinmonitoring;
- in response to a request from a regulatory authority;
- at the conclusion of contracts with state enterprises.
The beneficiary is the person of the reputation of the company, since it is his personality that is the decisive factor in lending. In these cases, it is necessary to provide the following information about the beneficiary:
- information of the document proving his identity;
- address of residence;
- TIN;
- beneficiary's special questionnaire.
Thus, the beneficiary is a person who receives any benefit from what is in his ownership. The forms of such a gain, as you have seen, are different, but the law equally protects the rights of all beneficiaries.