Bearer shares are physical share certificates that are owned by the person that is in possession of the share certificates. The ownership of bearer shares is not recorded and the ownership remains entirely private. Thus, the ownership of an offshore company with bearer shares is only known by the holder of the bearer shares and the bearer shares may be bought, sold, or exchanged in complete privacy without any form of registration, reporting or alike.
The concept with bearer shares exists in many offshore jurisdictions and is used by many investors and corporate officers who wish to retain anonymity but ownership is extremely difficult to recover in the event of theft or loss.
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