A nominee shareholder is a person or entity that holds shares on behalf of another person or entity, known as the beneficial owner. The nominee shareholder's name is listed as the registered shareholder on the company's share register, but the beneficial owner retains all the rights and benefits of ownership, such as voting rights and entitlement to dividends.

The use of a nominee shareholder can be beneficial in certain circumstances, such as maintaining anonymity or confidentiality of the beneficial owner, or facilitating the transfer of ownership of shares.

If a person or entity wishes to use a nominee shareholder, they typically enter into a nominee agreement with the nominee shareholder, which outlines the terms of the arrangement and the rights and responsibilities of each party. The nominee agreement may include provisions related to the duration of the arrangement, the transfer of shares, and the payment of fees for the services of the nominee shareholder.

If a nominee shareholder is used for a period of one year, it is important to ensure that the arrangement is properly documented and that the nominee shareholder is authorized to act on behalf of the beneficial owner during that time. At the end of the one-year period, the beneficial owner may choose to continue the arrangement with the nominee shareholder, transfer the shares to another party, or take other actions related to their ownership of the shares.