Meticulous attention to detail, strong alliances with clients paramount, says Zinat H. Damji
This article was produced in partnership with Alliance Trust Company.
Mallory Hendry of Canadian Lawyer sat down with Zinat H. Damji, Founder and CEO of Alliance Trust, to discuss what her company offers and how it sets them apart in the market.
Q: What’s the story behind Alliance Trust Company?
A: When I founded Alliance Trust Company, I aimed to differentiate it by providing the highest level of service in the most cost effective manner — and that’s exactly what our team has done over the 14 years we’ve been in business.
Alliance Trust received the Government Trust Charter to operate as a “non-deposit taking trust company,” authorized to provide CORPORATE TRUST and TRANSFER AGENCY services. There are only 8-10 in Canada who are authorized to conduct such business, and we fulfill all government requirements, including maintaining a Reserve Fund of $2,000,000 (in unencumbered funds) at all times.
Q: What differentiates Alliance Trust from other trust companies?
A: Alliance Trust is unique because it only focuses on corporate trust and stock transfer services. We don’t deviate from this area. Along with our specialized knowledge, we provide personalized attention to our clients. All our client relationships are built on providing the highest level of service in the most cost effective manner, and our easy availability to clients is much appreciated. While we use the highest level of technology available, we are still easily available by telephone as and when a client wants assistance.
Q: What types of services does Alliance Trust offer?
A: Alliance Trust offers transfer agency and shareholder services, including maintaining shareholder registers for publicly listed corporations or privately held shares; providing shareholder meeting services; and Medallion Guarantee services to facilitate transfer of shares.
We also offer corporate trust services, where we can serve as a trustee for debentures issues; an interest and dividend disbursing agent; a depositary in mergers & acquisitions and a cash escrow agent in a sale and purchase transaction.
Q: Most of the above services are self-explanatory, but what does a cash escrow agent do? Why is it a function best handled by a trust company?
A: When there is a sale and purchase transaction between two or more parties, usually a small percentage of the total purchase price is held back for a length of time — between one to three years — until certain performance markers are achieved. During this time, it is best for the law firms acting on behalf of the various parties to appoint a third party which is neutral — a trust company — to hold the funds.
Holding the funds is a huge fiduciary responsibility, and we take that responsibility very seriously. As we are not a deposit taking trust company or bank, we open a segregated bank accounts for each of our clients so that the accounting is transparent as to whom the funds belong. We are meticulous in setting up the proper audit controls and diarize the release date.
Importantly, it’s an easy process. Alliance Trust uses a simple, standard escrow agreement that allows for some flexibility, and the fee for handling this function is very cost effective — a negligible drop in the bucket of transaction fees. The biggest advantage for lawyers, however, is the fact that the trust company is a completely neutral third party, which safeguards the money if there’s a conflict between their clients.
Q: Anything else you’d like to share about Alliance Trust?
A: Look at the population of the country — which other industry only has a handful of players in it? We operate in one of the most specialized fields in Canada and our team strives to be best-in-class. The service we provide to our clients and our attention to detail is second to none — we strive to build long-term relationships.
Zinat H. Damji is no stranger to the world of Corporate Trust and Stock Transfer Services. With a track record of having founded and run a successful trust company (Valiant Trust Company) once before, she brings to Alliance an even higher degree of sophistication of the industry as well as the business world. Guided by a strong Board of Directors, the Alliance team brings over 100 years of experience to the table.
