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Declaration Of Trust For Shares Template for Netherlands

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Key Requirements PROMPT example:

Declaration Of Trust For Shares

"I need a Declaration of Trust for Shares to be drafted for our Dutch tech startup, where our CFO will hold 1000 Series A shares in trust for three international investors, with specific provisions for quarterly reporting and pre-emptive voting rights arrangements."

Document background
The Declaration of Trust for Shares is a crucial document in Dutch corporate and investment practice, used when there is a need to separate legal and beneficial ownership of shares. This arrangement is commonly utilized in various scenarios including family wealth planning, corporate restructuring, or investment holding structures. While the Netherlands doesn't recognize traditional common law trusts, the Declaration of Trust for Shares is structured to comply with Dutch Civil Code provisions and creates a binding arrangement that achieves similar objectives. The document specifies the trustee's obligations, beneficiary's rights, and includes detailed provisions for share management, voting rights, and dividend distributions. It's particularly relevant in situations requiring confidentiality, professional share management, or when direct share ownership is not desirable or practical.
Suggested Sections

1. Parties: Identification of the Trustee and the Beneficiary with full legal names and addresses

2. Background: Context of the trust arrangement and explanation of why the Declaration of Trust is being made

3. Definitions: Definitions of key terms used throughout the document

4. Declaration of Trust: Explicit declaration that specified shares are held in trust, including details of the shares and company

5. Trustee Powers and Obligations: Detailed description of trustee's powers, duties, and responsibilities regarding the shares

6. Beneficiary Rights: Specification of beneficiary's rights, including voting rights, dividend rights, and other entitlements

7. Administrative Provisions: Procedures for maintaining records, correspondence, and documentation

8. Duration and Termination: Terms regarding the duration of the trust and circumstances for termination

9. Governing Law and Jurisdiction: Specification of Dutch law as governing law and jurisdiction for disputes

Optional Sections

1. Dividend Policy: Specific arrangements for handling dividends and distributions, used when special dividend arrangements are required

2. Voting Rights Procedures: Detailed procedures for exercising voting rights, used when specific voting arrangements are needed

3. Successor Trustee Provisions: Procedures for appointing successor trustees, used when continuity arrangements are required

4. Tax Provisions: Specific arrangements for handling tax matters, used when complex tax situations exist

5. Dispute Resolution: Alternative dispute resolution procedures, used when parties want to specify mediation or arbitration

6. Reporting Requirements: Specific reporting obligations of the trustee, used when detailed reporting is required

Suggested Schedules

1. Schedule 1 - Share Details: Detailed description of the shares held in trust, including share certificates numbers and class

2. Schedule 2 - Company Information: Details of the company whose shares are held in trust, including registration number and address

3. Schedule 3 - Initial Instructions: Any specific instructions from the beneficiary to the trustee regarding the administration of shares

4. Appendix A - Specimen Signatures: Specimen signatures of authorized signatories

5. Appendix B - Power of Attorney: Standard form of power of attorney for use by trustee when required

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
































Clauses






























Relevant Industries

Financial Services

Investment Management

Corporate Services

Banking

Private Equity

Family Office

Professional Services

Real Estate Investment

Technology

Manufacturing

Relevant Teams

Legal

Corporate Secretariat

Compliance

Corporate Services

Investment Management

Trust Administration

Corporate Governance

Private Client Services

Financial Administration

Risk Management

Relevant Roles

Corporate Lawyer

Legal Counsel

Company Secretary

Trust Manager

Compliance Officer

Corporate Services Manager

Investment Manager

Legal Director

Wealth Manager

Corporate Governance Officer

Financial Director

Trust Administrator

Corporate Trustee

Private Client Advisor

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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