Legal Services Act 2007

Material interest E+W

3 (1) For the purposes of this Part of this Act, a person holds a material interest in a body (“B”) if the person— E+W

(a) holds at least 10% of the shares in B,

(b) is able to exercise significant influence over the management of B by virtue of the person's shareholding in B,

(c) holds at least 10% of the shares in a parent undertaking (“P”) of B,

(d) is able to exercise significant influence over the management of P by virtue of the person's shareholding in P,

(e) is entitled to exercise, or control the exercise of, voting power in B which, if it consists of voting rights, constitutes at least 10% of the voting rights in B,

(f) is able to exercise significant influence over the management of B by virtue of the person's entitlement to exercise, or control the exercise of, voting rights in B,

(g) is entitled to exercise, or control the exercise of, voting power in P which, if it consists of voting rights, constitutes at least 10% of the voting rights in P,

(h) is able to exercise significant influence over the management of P by virtue of the person's entitlement to exercise, or control the exercise of, voting rights in P.

(2) Licensing rules made by the relevant licensing authority may provide—

(a) that the references in sub-paragraph (1) to 10% are to have effect as references to such lesser percentage as may be specified in the rules;

(b) that in relation to a partnership, for the purposes of this Part a person has a material interest in the partnership if he is a partner (whether or not the person has a material interest by virtue of sub-paragraph (1)).

(3) For the purposes of sub-paragraph (1) “the person” means—

(a) the person,

(b) any of the person's associates, or

(c) the person and any of the person's associates taken together.

(4) For the purposes of this Schedule, material interests held by virtue of different paragraphs of sub-paragraph (1) are restricted interests of different kinds.

Commencement Information

I1 Sch. 13 para. 3 in force at 1.10.2011 by S.I. 2011/2196, art. 2(1)(d)