A Declaration of Trust in the context of an offshore company is a written undertaking by a nominee shareholder to the beneficial (real) owner to hold shares on his (beneficial owner) behalf in the capacity of a trustee. The nominee cannot transfer, deal with or dispose of the shares except on the specific written instructions of the beneficial owner.
The nominee shareholder further assigns all rights dividends, profits etc. to the beneficial owner as well as agree to exercise his voting power as the owner may direct.