Dummy Shareholder

An entity that holds shares in a public company on behalf of an individual or firm, the latter being the real or true owner of these shares. A dummy shareholder will therefore have no beneficial interest in the account where these shares are being held. Decisions with regard to the disposition or tendering of these shares may also be made by the real owner, rather than the dummy shareholder.

The subject of dummy shareholders is a gray area in most jurisdictions, given the possibility that they may be used to circumvent securities legislation or perpetuate fraud. Dummy shareholders with large blocks of shares can also pose a particular problem when a company's management is trying to fend off a hostile takeover bid, since there is little indication of whether these shares are being held in friendly or hostile hands.


Investment dictionary. . 2012.

Look at other dictionaries:

  • dummy shareholder — n. Someone who holds shares of stock in his or her own name but for the benefit of the real owner. The Essential Law Dictionary. Sphinx Publishing, An imprint of Sourcebooks, Inc. Amy Hackney Blackwell. 2008 …   Law dictionary

  • United Kingdom company law — Beside the River Thames, the City of London is a global financial centre. Within the Square Mile, the London Stock Exchange lies at the heart of the United Kingdom s corporations. United Kingdom company law is the body of rules that concern… …   Wikipedia

  • Piercing the corporate veil — or lifting the corporate veil is a legal decision to treat the rights or duties of a corporation as the rights or liabilities of its shareholders or directors. Usually a corporation is treated as a separate legal person, which is solely… …   Wikipedia

  • List of Tekken characters — The following is a list of playable characters from the fighting game, Tekken. The characters are listed in order of the games they debuted in: Contents 1 Introduced in Tekken 1.1 Anna Williams 1.2 Armor King 1 …   Wikipedia

  • Auction — Auctioneer redirects here. For the DC Comics supervillain, see Auctioneer (comics). An auctioneer and her assistants scan the crowd for bidders. An auction is a process of buying and selling goods or services by offering them up for bid, taking… …   Wikipedia

  • corporation — cor·po·ra·tion /ˌkȯr pə rā shən/ n [Late Latin corporatio, from Latin corporare to form into a body, from corpor corpus body]: an invisible, intangible, artificial creation of the law existing as a voluntary chartered association of individuals… …   Law dictionary

  • proxy — / präk sē/ n pl prox·ies [Middle English procucie, contraction of procuracie, from Anglo French, from Medieval Latin procuratia, alteration of Latin procuratio appointment of another as one s agent] 1: the act or practice of a person serving as… …   Law dictionary

  • Ivar Kreuger — Match King redirects here. For the 1932 film about Kreuger, see The Match King. Ivar Kreuger Ivar Kreuger c. 1920 Born March 2, 1880(1880 03 02) Kalmar, Sweden …   Wikipedia

  • NYSE Euronext — NYSE Euronext, Inc. Type Public Traded as NYSE: NYX Euronext:  …   Wikipedia

  • Comprehensive campaign — A comprehensive campaign is labor union organizing or a collective bargaining campaign with a heavy focus on research, the use of community coalition building, publicity and public pressure, political and regulatory pressure, and economic and… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.