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Q

In a title trust of shares, what do I do if the person who lent their name does not return the shares?

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During the process of establishing a company, due to shareholding restriction issues, I carried out a title trust of shares by registering the shares under an acquaintance's name. However, as time passed, I, the actual owner, requested that the shares be returned, but the nominal holder is refusing. I am curious whether, in such a case, I can legally recover the shares.

Title trust of shares

A

Answer to Related Inquiry

In a title trust of shares, if the nominal holder does not return the shares, the beneficial owner can claim the return of the shares through litigation.

A title trust of shares is a structure in which the actual owner and the nominal holder are different, and when a dispute arises, who the beneficial owner is becomes the key issue.

Therefore, if the nominal holder claims the shares as their own property and refuses to return them, you must have your rights confirmed through legal procedures.

The response procedure related to a title trust of shares proceeds as follows.

First, proving the title trust relationship

You must secure materials that can prove the title trust relationship, such as the source of the funds used to acquire the shares, the circumstances of the share acquisition, materials from the company establishment process, and agreements among shareholders.

Second, filing a claim for the return of the shares or a lawsuit to confirm ownership

If the nominal holder refuses to return the shares, you assert your status as the beneficial owner through a lawsuit for the return of the shares or a lawsuit to confirm ownership of the shares.

Third, responding to issues of dividends and disposal

If the nominal holder has received dividends or arbitrarily disposed of the shares, a claim for the return of unjust enrichment or for damages can also be considered together.

In this process, you must prove the beneficial ownership relationship through objective materials such as the flow of funds and the company's governance structure.

Daeryun, the 9th largest law firm in Korea (based on 2025 National Tax Service value-added tax filings), comprehensively reviews the circumstances of share acquisition and the flow of funds in title trust of shares disputes and systematically organizes the necessary evidence to support you in responding to the procedures for the return of shares and the confirmation of rights.

If necessary, we collaborate with the Evidence Investigation Center and the Digital Forensics Center to analyze the flow of funds, the circumstances of share acquisition, and related materials, and we support the securing of evidence needed to resolve the dispute.

In addition, we review further disputes, such as those over dividends and the disposal of shares, and prepare a comprehensive solution.

If you need a legal response regarding a title trust of shares matter, we recommend developing a response direction through a consultation with a civil attorney at Daeryun Law LLC.

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