Indirect Account Holder Clause Samples
The Indirect Account Holder clause defines the rights and responsibilities of parties who hold securities or financial assets through an intermediary, rather than directly with the issuer or central securities depository. In practice, this clause clarifies how such account holders can exercise their rights, such as voting or receiving dividends, and outlines the obligations of intermediaries in facilitating these actions. Its core function is to ensure that indirect account holders are able to effectively participate in the rights and benefits associated with their holdings, despite not being the direct registered owners, thereby addressing potential gaps in legal recognition and operational processes.
Indirect Account Holder. An indirect account holder is any account holder who does not have a direct relationship with ▇▇. For example, a person that holds an account with a foreign intermediary or an interest in a foreign flow-through entity which, in turn, has a direct relationship with QI is an indirect account holder of QI. A person is an indirect account holder even if there are multiple tiers of intermediaries or flow- through entities between the person and QI.