Straw man meaning

A straw man is a person who acquires or holds shares, land or other assets in their own name for the person who provided the funds, with the intention that the asset is ultimately for that person’s benefit or later transfer. The term is descriptive, not defined in statute, and is used across property, corporate and commercial practice. Courts focus on substance: who is the beneficial owner and what was intended. In England & Wales and Northern Ireland, a purchase funded by A in the name of B commonly raises a presumption of resulting trust in favour of A (subject to evidence of gift or statutory bars). In Ireland, similar common‑law principles apply. In Scotland, while the terminology differs, the court may recognise the real beneficiary and apply trust or unjustified enrichment remedies. Legitimate nominee arrangements (documented by a declaration of trust/nominee agreement) are common. However, using a straw man to evade statutory or regulatory restrictions (for example on ownership, tax, planning, licensing, insolvency or subsidies) risks illegality, unenforceability, and offences (fraud and anti‑money laundering/POCA). Transparency duties may require disclosure of beneficial ownership (Companies House PSC register, Register of Overseas Entities, Irish RBO, and trust/land registration declarations). “Straw man” often implies concealment;...