A. A corporation may establish a procedure by which the beneficial owner of shares that are registered in the name of a nominee is recognized by the corporation as the shareholder. The extent of this recognition may be determined in the procedure.

Terms Used In Arizona Laws 10-723

  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Shareholder: means the person in whose name shares are registered in the records of a corporation or the beneficial owner of shares to the extent of the rights granted by a nominee certificate on file with a corporation. See Arizona Laws 10-140
  • Shares: means the units into which the proprietary interests in a corporation are divided. See Arizona Laws 10-140

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.

6. Other aspects of the rights and duties created.

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