Table Of Contents
Uses
One of the most common reasons to take bearer shares into use could be asset protection. It is high because these shares provide better privacy options, unlike no other. For example,- individuals who are not willing to bear the risks of their assets getting seized due to legal proceedings like divorce, liability suit, etc., might opt for their participation in bearer shares.
Conclusion
Bearer shares allow the privacy of the owner, ease of transfer, and help in the maximization of liquidity too. The name of the owner of these shares is mentioned as “the bearer.” These shares no longer exist as these have always been a challenge for tax authorities since fraudsters wrongly use these for tax evasion purposes.
It also paved ways for terrorist funding, money laundering, and various anti-national activities. Providing an ownership certificate is not possible in the case of these shares, and therefore, the identity of the owner cannot be justified at all. Even certain banks are against companies that use bearer shares as they feel the risk of getting exposed to vulnerable attacks.
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