Define: Beneficial Owner

UK Accounting Glossary

Definition: Beneficial Owner



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Full Definition of Beneficial Owner


Beneficial owner is a legal term which refers to a person who has the right to live in a property and use it as he/she wishes although he/she may not actually possess full ownership, for example, a leaseholder.

The phrase, however, is becoming more and more common in stockmarket usage as a result of the growing importance of nominee accounts. In this instance, the beneficial owner of shares owns shares held in trust by a nominee, which is usually a company set up for this purpose by a stockbroker.

You may wish to hold shares through a nominee account to reduce paperwork or save on dealing costs as the stock market moves to rolling settlement.

Remember, you may lose your rights to shareholders’ perks, annual reports and your right to vote at annual and special shareholder meetings if you hold your shares in a nominee account.


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https://payrollheaven.com/define/beneficial-owner/
Modern Language Association (MLA):
Beneficial Owner. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. March 31, 2020 https://payrollheaven.com/define/beneficial-owner/.
Chicago Manual of Style (CMS):
Beneficial Owner. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/beneficial-owner/ (accessed: March 31, 2020).
American Psychological Association (APA):
Beneficial Owner. PayrollHeaven.com. Retrieved March 31, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/beneficial-owner/

Definition Sources


Definitions for Beneficial Owner are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 15th February 2020.