An escrow of shares may be recognized even if not been registered at the register of shareholders

A person held a share in a company for another but was registered as a shareholder at the register of shareholders and not as an escrow agent. When he requested to review company documents, he was refused because he is not the real shareholder.

The Court rejected the motion to order the company to deliver the documents and held that an escrow may be recognized even if it was not registered at the registry of shareholders because the register is declarative and may be contradicted. Thus, despite the registration at the registrar of companies, the escrow agent is not the real owner of the share but only held it in escrow and therefore is not entitled to the documents requested.