Who is the beneficiary?
In recent years, business and trade relations have been developing rapidly. This leads to the constant emergence of new terms that are used in the business sphere and imply the activities of different persons. So, recently, the word “beneficiary” has become increasingly common, and many certainly do not know what it means.
This term is often applied to persons who profit from the organization, but this interpretation is not entirely accurate. So what meaning can this word actually have? What rights are granted to the beneficiary and what are his / her responsibilities?
Who is called the beneficiary?
In General, this concept is applied to persons who are assigned to the issuance of funds, that is, to the recipients of money. In this case, the recipient is both an ordinary individual and an enterprise, company, organization.
In Russian there is a synonym of this term – the beneficiary. Recently, the concept has been used especially often due to the fact that offshore legislation is being tightened. In this context, the beneficiary can be called a person who ultimately receives profit from the business. He is also the actual owner of the organization.
In fact, the beneficiary has all the powers of the owner of the organization, and can manage it both directly and through other enterprises. Often it is very difficult to find a real business owner, because he can control his company not only directly, but also through several other organizations.
At the same time, a number of companies through which management functions are implemented can be official founders, and as a formal business owner, a completely different person acts. Usually the name of the real owner is given only to banking organizations.
However, the real owner of the company – this is not the only definition for the concept of “beneficiary”. There are several other conditions under which a person may be called a beneficiary.
Who is the beneficiary in the insurance industry?
In this case, this term is applied to the person who is listed in the insurance policy, and it is to him that all payments of Finance under the contract are sent. In some cases, such a person may be established by law, and in all other cases – it is appointed by the policyholder.
To whom is the term “beneficiary” used in cases of trust management?
In this situation, this term refers to a person who transfers his property to third parties in trust, or for use by unauthorized persons. In this case, the beneficiary is paid cash.
Who is called the beneficiary in the banking sector?
Here the beneficiary can be called:
the one who receives Bank certificates;
recipient of Finance on collection order;
a person to whom a documentary credit is issued by the issuing Bank.
What rights does the beneficiary have?
The beneficiary is entitled to the following points:
disposal of shares in the company, its partial or complete sale;
control over the performance of the company’s management duties; appointment of a person to the position of General Director or his dismissal on legal grounds;
receipt of income from the company’s activities (in accordance with the amount of dividends);
participation in meetings of shareholders or founders, as well as participation in decision-making (in accordance with the size of the share).
Thus, it can be concluded that the concept of “beneficiary” fit different meanings. It should be noted that the terms “founder” and “Director General” are not synonymous with the word “beneficiary”, although people often believe that they are the same. All three terms have completely different meanings and are used in relation to persons with different rights, duties and powers.
For example, a person who holds the position of General Director of an enterprise may not be its founder, beneficiary or owner. Even a person who is listed as the founder of an organization may well not be its owner or beneficiary.
This means that the beneficiary in the business sphere is called the person who makes a profit from a particular organization. In this case, the beneficiary does not necessarily hold the position of General Director or to be the founder of the enterprise.