What Does Non-Objecting Beneficial Owner Mean?
A non-objecting beneficial owner is a beneficial owner who gives permission to a financial intermediary to release their name and address to the company(ies) or issuer(s) in which they have bought securities.
Understanding Non-Objecting Beneficial Owner (NOBO)
Companies and issuers request this personal information so they can contact the shareholder regarding important shareholder communications (such as proxies, circulars for rights offerings and annual/quarterly reports). A non-objecting beneficial owner will receive these items directly since they have allowed their information to be released.
A beneficial owner of a security is someone who has a security or securities held by a financial intermediary. This tends to be the individual's broker, or, in some cases, it may be another financial intermediary the person is associated with. An objecting beneficial owner (OBO) instructs the financial intermediary who holds the securities to not provide the owner's name and personal information to the company that issued the securities. When you set up your account with a broker, you will often have the choice as to whether or not you would like your information released to the companies in which you purchase shares.