Part 5Alternative business structures
Special kinds of body
108“Low risk body”
1
A body (“B”) is a low risk body if the management condition and the ownership condition are satisfied in relation to it.
2
The management condition is that the number of managers of the body who are within subsection (4) is less than 10% of the total number of managers.
3
The ownership condition is that—
a
the proportion of shares in B held by persons within subsection (4) is less than 10%, and
b
the proportion of the voting rights in B which such persons are entitled to exercise, or control the exercise of, is less than 10%, and
c
if B has a parent undertaking (“P”)—
i
the proportion of shares in P held by such persons is less than 10%, and
ii
the proportion of the voting rights in P which such persons are entitled to exercise, or control the exercise of, is less than 10%.
4
The persons within this subsection are—
a
non-authorised persons;
b
licensed bodies.
5
For the purposes of this section “parent undertaking” has the same meaning as in the Financial Services and Markets Act 2000 (c. 8) (see section 420 of that Act).