A hybrid company, a company limited by guarantee but which also has a share capital, is a potential alternative offshore structure to a discretionary or personal interest settlement. It is possible, under the hybrid structure, to separate the legal ownership of the assets from the beneficial interest in them.
The main use envisaged for such an entity is as a quasi trust.
By forming the hybrid with shareholders as professional administrators and non-shareholding members as the beneficial owners, the distinction between legal and beneficial ownership emerges. A hybrid can, therefore, be used where trust as is too restrictive - for example:
- for personal living in civil law jurisdiction countries that do not recognise trust situations;
- where the trust law is too restrictive for the desired purpose of the entity;
- for family foundations or charities.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
Further information is available on the scheme from Bruce Taylor, PO Box 250, Grosvenor House, 66-67 Athol Street, Douglas, Isle of Man IM99 IXJ, Tel: +44 (0) 1624 672332, Fax: +44 (0) 1624 672334.
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