Very simply: it acts as a go-between for you and the companies you invest in, to ease the admin burden. The nominee is the legal owner of your investments, but you remain the beneficial owner and retain full economic rights to your shares. This arrangement is created at the point when you decide to invest.
The SyndicateRoom nominee will keep share certificates on your behalf and arrange SEIS and EIS certificates, so neither you nor the company you’ve invested in have to worry about burdensome paperwork. You will still receive a confirmation of your investment and your SEIS and EIS certificates to keep hold of.
Importantly, the SyndicateRoom nominee will not decide how to vote or take decisions on your behalf – it will simply collect your vote or decision and pass this onto the company.
SyndicateRoom will provide company updates and the SyndicateRoom nominee will administer your investment in the case of dividend payments or an exit.
In the unlikely event that SyndicateRoom or the nominee service provider cease trading, shares held by the nominee will be transferred to you as the beneficial owner, who will then become the direct shareholder; alternatively you can instruct that the shares are transferred to a replacement nominee of your choice.
You vote through the SyndicateRoom nominee, which will be easier for you and the company. The nominee does not make voting or other decisions on your behalf. You are not prevented from attending company meetings such as AGMs.
SyndicateRoom will provide any company updates and an annual review of all your investments.
There are no upfront or ongoing fees for investors – you keep any profits from your investments.