Beneficial Owners

Question:  Can a trustee of a trust that owns an interest in a company be a beneficial owner?

Answer: Yes.  A trustee of a trust or similar arrangement may exercise substantial control over a reporting company.  The following individuals may hold ownership interests in a reporting company through a trust or similar arrangement:

• A trustee or other individual with the authority to dispose of trust assets.
• A beneficiary who is the sole permissible recipient of trust income and principal or who has the right to [. . .]
  

If your company is a reporting company, your next step is to identify its beneficial owners. A beneficial owner is any individual who, directly or indirectly:

• Exercises substantial control over a reporting company; or
• Owns or controls at least 25 percent of the ownership interests of a reporting company.

An individual might be a beneficial owner through substantial control, ownership interests, or both. Reporting companies are not required to report the reason (i.e., substantial control or ownership interests) that an individual is a beneficial [. . .]