What are Bearer Share Certificates?
Negotiable share certificates made out in the name of the bearer and not in the name of a particular person or organization. This is a tremendously powerful feature for preserving anonymity and privacy, but can be very dangerous if the certificate falls into the wrong hands. Possession of the certificate constitutes ownership of the asset(s). The shares in the company with bearer shares are transferable by physical delivery of the certificates and the name of the holder is not registered in the books of the company, unlike registered shares, which are transferable by an instrument of transfer being supported by relevant resolutions and entries in the records of the company available for public.
Bearer share certificates indicates that the holder of a share certificate is the one whom holds title or ownership. No records are kept of ownership, as the holder of the bearer certificate takes on the ownership. Bearer share certificates can be used to avoid transfer taxes in certain situations.
