Legal Services Act 2007

The divestiture condition

41 (1) The divestiture condition is satisfied in relation to a non-authorised person and a licensed body if—

(a) the person holds a restricted interest in the licensed body in the circumstances mentioned in sub-paragraph (2), and

(b) the person holds that interest, in whole or in part, by virtue of the person’s shareholding in a body corporate with a share capital (in this Part of this Schedule referred to as “the relevant shares”).

(2) The circumstances are that the person holds the restricted interest—

(a) as a result of the person taking a step in circumstances in which that constitutes an offence under paragraph 24(1) (whether or not the person is charged with or convicted of an offence under that paragraph),

(b) in breach of conditions imposed under paragraph 17, 28, or 33, or

(c) in contravention of an objection by the licensing authority under paragraph 31 or 36.

(3) In sub-paragraph (1)(b), references to a person’s shareholding are to be read in accordance with paragraph 3(3) or 4(2) (as the case may be).