Who is the beneficiary? What does this word mean and where did it come from
Modern life introduces many foreign words. One of these terms is often used in insurance, law and in the banking sector, although its general meaning is intuitively quite understandable. It's about the word "beneficiary." This concept is often found on the pages of special editions. Let's try to understand its meaning.
Wikipedia and various encyclopedic dictionaries give us the definition of this concept: the beneficiary is the person who is the final recipient of a certain cash payment. The basis for receiving funds is a debt document or contract.
Origin of the concept
Presumably the word is derived from French. The original word means benefit, monetary gain, profit. In turn, the French word has Latin roots - Latin bene means “good.”Thus, the beneficiary can be called a beneficiary.
Beneficiaries in real estate
This term has other meanings. For example, in civil law, a beneficiary is a subject that benefits from renting out a property, in other words, a rentier. So it is also possible to name people who transferred the rights to manage their property to third parties. In this case, the ultimate beneficiary is a person who receives income but does not participate in management. In the case of a business enterprise, you can call the owner, who transferred the rights to the director or manager, and he simply receives income from the activities of the company.
Beneficiaries in insurance
In the insurance business, there is the concept of "ultimate beneficiary." This is a person in whose favor the insurance payment will be made. In case of various surprises and illnesses, the beneficiary is usually a person whose health and property is insured. In case of accidents or sudden death, the beneficiary refers to another person - usually close relatives or friends of the deceased.
Beneficiaries in banking
In some cases, the beneficiary is the depositor of a bank.So in the contracts are called the owners of documentary letters of credit, persons specified as recipients of bank certificates, or those who receive payment of collection.
In contracts governing the economic activity of an enterprise, the beneficiaries of a legal entity are those who directly own the enterprise. This is usually a list of individuals who enjoy the rights of the owners or owners of the company. Receipt and distribution of net income can be carried out both by the beneficiaries and intermediaries acting in their interests. At the same time, the legal ownership of the company's assets may belong to a completely different person or even a competing company. Thus, paradoxical situations arise in the market, when companies belonging to one person wage a tough competition for markets.Sometimes it happens that the beneficiaries are the founder or several founders who actually own the company, but do not manage it. Often, top managers for this job are outsourced and employed in temporary, although very well-paid positions.In this case, the manager of the company assumes all the risks of the development of the enterprise, its success and expansion. In case of success, temporary managers receive a large profit, in case of defeat an indelible spot on their professional reputation.
The ultimate beneficiary is a person whose personal data is available only to the financial institution whose services the company uses. Therefore, the true ownership of many business enterprises can be so hard to prove. In any case, the beneficiary is an individual. They cannot be any organization or voluntary society.
The owners of securities are often beneficiaries. Ownership of other assets belongs directly to him. As the owner of the securities, the beneficiary has the right to participate and vote in the meetings of the joint stock company, to choose the company's management. As a securities holder, he takes part in various fields of activity of his own company.
In many countries, the names of the real owners of enterprises, companies and large trusts can be found in public registries posted on government websites.So the public controls the owners of the continental corporations themselves, not allowing them to join the oligarchic unions. On the other hand, there are many legal gimmicks that make it possible to use income in the conditions of anonymity. In the so-called offshore countries, even special local laws have been developed that allow owners of large capitals to use their money, while remaining unknown.