A shareholder is any person or legal entity that is recorded as owning shares in a company. This ownership gives them legal rights, such as voting rights and the potential to receive dividends.
An ultimate beneficial owner (UBO) is the individual who ultimately owns or controls a company and enjoys the economic benefits of that ownership, even if the shares are held in someone else’s name. This can happen, for example, where shares are held through nominee shareholders, holding companies or trusts.
In some cases, the shareholder and the ultimate beneficial owner are the same person. In other cases, they differ: the shareholder holds the legal title to the shares, while the ultimate beneficial owner is the person who ultimately benefits from, and often effectively controls, the company.
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