The beneficiary is who is this?
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 individuals. So, recently the word “beneficiary” has become increasingly common, and many probably don’t know what it means.
Often, this term applies to individuals who profit from an organization, but this interpretation is not entirely accurate. So what is the meaning of this word? What rights does the beneficiary have, and what are his responsibilities?
Who is called the beneficiary?
In general, this concept is applied to persons who are assigned to issue funds, that is, to recipients of money. In this case, the recipient is as an ordinary individual, and the company, company, organization.
In Russian, there is a synonym for this term – beneficiary. Recently, the concept has been used especially often due to the fact that offshore legislation is becoming tougher. In this context, the beneficiary can be called a person who ultimately profits 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 enter the real business owner – after all, he can control his company not only directly, but also through several other organizations.
At the same time, a number of companies through which managerial functions are implemented may be official founders, and a completely different person acts as a formal business owner. Usually, the name of the present owner is issued only to banking organizations.
However, the real owner of the company – this is not the only definition for the concept of “beneficiary”. Here there are several other conditions, according to which a person can 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 on the insurance policy, and it is to him that all payments of finance are sent according to the contract. In some cases, such a person may be established by law, and in all others – he is appointed by the policyholder.
To whom is the term “beneficiary” used in cases of trust management?
In this situation, this concept means 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 you can call the beneficiary:
the one who receives bank certificates;
the recipient of finance for the collection order;
a person who is issued a documentary letter of credit by the issuing bank.
What rights does the beneficiary have?
The beneficiary is entitled to the following items:
disposal of shares in the company, its partial or full sale;
control over the implementation of the company’s management of their duties; appointing a person to the position of general director or legally dismissing him;
income from the enterprise (in accordance with the size 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, we can conclude that the concept of “beneficiary” fit various meanings. It should be noted that the terms “founder” and “CEO” are not synonymous with the word “beneficiary”, although people often believe that this is the same thing. 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 either its founder, or beneficiary, or owner. Even a person who is listed as a founder of an organization may well not be its owner or beneficiary.
This means that it is the person who makes a profit from a particular organization that is the beneficiary in the business sphere. In this case, the beneficiary does not necessarily hold the position of CEO or be the founder of the company.