Shares Held by Nominees

Shares Held by Nominees. (a) A corporation may establish a procedure by which the beneficial owner of shares that are registered in the name of a nominee is recognition may be determined in the procedure. (b) The procedure may set forth: (1) The types of nominees to which it applies; (2) The rights or privileges that the corporation recognizes in a beneficial owner; (3) The manner in which the procedure is selected by the nominee; (4) The information that must be provided when the procedure is selected; (5) The period for which selection of the procedure is effective; and (6) Other aspects of the rights and duties created. Source: PL 10-7, § 1 (Bus. Corp. Reg. § 7.23). Commission Comment: The unclear language of subsection (a) above was codified verbatim from Bus. Corp. Reg. § 7.23 which was published in 12 Comm. Reg. 6942 and subsequently adopted in 12 Comm. Reg. 7201.