Nominee in shares - private trust

yes if it is registered.

Section 153 of the Companies Act mentions that -

"No notice of any trust, express, implied or constructive, shall be entered on the register of members or of debenture holders."

What is the interpretation of the above Section?

I am of the opinion that the the shares can be held in the name of the Trustees on behalf of the Trust.  It cannot be held in the name of the Trust itself.  Please clarify,

What section 153 means is that a company shall not record in its register of members or debenture-holders anything to show that as between the members/debenture-holders and any other person there is any kind of relationship as trustee/beneficiary. Having regard to the actual wording of the section, it only says that no notice of any trust shall be entered in the register of members/debenture-holders. It is a settled position of law that the company itself may not properly refuse to take notice of or recognise any trust brought to its notice otherwise than by entry in the register or to act in accordance with the terms of such notice.

The erstwhile Department of Company Law Administration issued Press Note dated June 25th, 1957 on this issue which states that shares in a company, being the property of the trust can be held in the names of its trustees being individuals, corporations, companies or societies registered under the Societies Registration Act, 1860, without addition of the statement that they are trustees. Shares cannot be held in the name of the trust unless it is a seperate legal entity.

In view of the above, you should register the shares in the name of the trustees without addition of any statement in the register that they are held in trust. However,  a seperate notice should be given to the company  that such shares are held in trust and the company should take cognizance of such notice. Moreover, the company should have regard to such notice of trust if such shares are to be transferred in future.