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Which of the following statements are FALSE? Select all that apply.Group of answer choicesA shareholder of a company may hold shares beneficially or as nominee in AustraliaThe ‘chain of corporate entities’ may be located in different jurisdictions or countriesA nominee shareholder may not be a companyPeople with an interest in a company are defined as those who own 25% or more of the sharesIn Australia, a bearer share certificate can be used to transfer legal and beneficial ownership of an Australian company

Question

Which of the following statements are FALSE? Select all that apply.Group of answer choicesA shareholder of a company may hold shares beneficially or as nominee in AustraliaThe ‘chain of corporate entities’ may be located in different jurisdictions or countriesA nominee shareholder may not be a companyPeople with an interest in a company are defined as those who own 25% or more of the sharesIn Australia, a bearer share certificate can be used to transfer legal and beneficial ownership of an Australian company

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Solution

The following statements are FALSE:

  1. A nominee shareholder may not be a company: This is false because a nominee shareholder can be an individual or a company. A nominee shareholder holds shares on behalf of the actual owner under a nominee agreement.

  2. In Australia, a bearer share certificate can be used to transfer legal and beneficial ownership of an Australian company: This is false because bearer shares are not recognized under Australian law. The Corporations Act 2001 (Cth) requires that a company must register its members and does not provide for bearer shares.

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