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Declaration Of Trust For Shares Template for United Arab Emirates

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Key Requirements PROMPT example:

Declaration Of Trust For Shares

"I need a Declaration of Trust for Shares for our UAE family business where I will act as trustee holding 2000 shares on behalf of my three children, with the trust arrangement to commence from March 1, 2025, including specific provisions for dividend distribution and voting rights exercise."

Document background
The Declaration of Trust for Shares is essential in UAE business structures where legal and beneficial ownership of shares need to be separated. This document is commonly used in corporate restructuring, family business arrangements, or investment structures where direct share ownership is not desired or practical. The declaration must carefully navigate UAE legal requirements, particularly as traditional common law trust concepts are not fully recognized in the UAE's civil law system (except in the DIFC). The document typically includes comprehensive details about the shares held in trust, the rights and obligations of all parties, voting arrangements, and dividend distribution mechanisms. It serves as crucial evidence of the trust arrangement and provides protection for both trustees and beneficial owners.
Suggested Sections

1. Parties: Identifies and provides full details of the Trustee and the Beneficial Owner(s)

2. Background: Sets out the context of the trust arrangement, including details of the shares being held in trust

3. Definitions: Defines key terms used throughout the document

4. Declaration of Trust: The formal declaration by the Trustee confirming they hold the shares on trust

5. Trust Property: Detailed description of the shares held in trust, including quantity, class, and the company details

6. Trustee Powers and Duties: Comprehensive list of the Trustee's powers and obligations regarding the trust property

7. Beneficial Owner's Rights: Details of the Beneficial Owner's rights, including voting, dividends, and disposal instructions

8. Duration of Trust: Specifies the term of the trust arrangement and conditions for termination

9. Governing Law and Jurisdiction: Specifies UAE law as governing law and establishes jurisdiction for disputes

10. Execution: Formal execution block for all parties to sign

Optional Sections

1. Trustee Remuneration: Include when the Trustee is to receive payment for their services

2. Successor Trustees: Include when arrangements for replacement trustees need to be specified

3. Multiple Beneficial Owners: Include when there are multiple beneficial owners to specify their respective rights and shares

4. Anti-Money Laundering Compliance: Include when additional AML compliance provisions are required

5. Confidentiality: Include when specific confidentiality provisions are needed beyond standard obligations

6. Power of Attorney: Include when the Trustee needs specific powers to act on behalf of the Beneficial Owner

Suggested Schedules

1. Schedule 1 - Share Details: Detailed information about the shares held in trust, including share certificates numbers and dates

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

3. Schedule 3 - Beneficial Ownership Register: Register of beneficial owners and their respective interests

4. Schedule 4 - Trustee Powers: Detailed list of specific powers granted to the Trustee

5. Appendix A - Form of Transfer Instrument: Template for share transfer forms to be used when required

6. Appendix B - Specimen Signatures: Authenticated signatures of all parties for verification purposes

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

Legal Services

Family Offices

Private Equity

Real Estate

Professional Services

Banking

Wealth Management

Relevant Teams

Legal

Corporate Secretarial

Compliance

Corporate Services

Investment

Wealth Management

Corporate Governance

Finance

Risk Management

Board Secretariat

Relevant Roles

Corporate Lawyer

Legal Counsel

Company Secretary

Trust Administrator

Compliance Officer

Corporate Services Manager

Legal Director

Investment Manager

Wealth Manager

Corporate Governance Officer

Board Director

Financial Controller

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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