Section 660 | Treatment of shares held by nominee

(1)This section applies where shares in a limited company—

(a)are taken by a subscriber to the memorandum as nominee of the company,

(b)are issued to a nominee of the company, or

(c)are acquired by a nominee of the company, partly paid up, from a third person.

(2)For all purposes—

(a)the shares are to be treated as held by the nominee on his own account, and

(b)the company is to be regarded as having no beneficial interest in them.

(3)This section does not apply—

(a)to shares acquired otherwise than by subscription by a nominee of a public company, where—

(i)a person acquires shares in the company with financial assistance given to him, directly or indirectly, by the company for the purpose of or in connection with the acquisition, and

(ii)the company has a beneficial interest in the shares;

(b)to shares acquired by a nominee of the company when the company has no beneficial interest in the shares.