A Registered Shareholder is where the beneficial (real) owner records his/her name on the Share Certificate and in the Register of Shares as the owner of the allotted shares.
A Nominee Shareholder is where the beneficial owner chooses not to have his/her name on the Share Certificate or in the Share Register. A Nominee becomes the third party for the real owner. The Nominee appears on the Certificate and in the Register. The Nominee signs a Declaration of Trust to the Beneficial Owner giving up any right to exercise any powers over the shares including voting rights or the rights to sell or transfer these shares.
A Nominee Shareholder is used where the Companys Registry may be open to public scrutiny or if the owner requires a greater sense of privacy.