Economic Crime (Transparency and Enforcement) Act 2022

Beneficial owners

6 A person (“X”) is a “beneficial owner” of an overseas entity or other legal entity (“Y”) if one or more of the following conditions are met.

• Ownership of shares

  Condition 1 is that X holds, directly or indirectly, more than 25% of the shares in Y.

• Voting rights

  Condition 2 is that X holds, directly or indirectly, more than 25% of the voting rights in Y.

• Right to appoint or remove directors

  Condition 3 is that X holds the right, directly or indirectly, to appoint or remove a majority of the board of directors of Y.

• Significant influence or control

  Condition 4 is that X has the right to exercise, or actually exercises, significant influence or control over Y.

• Trusts, partnerships, etc

  Condition 5 is that—

  (a)

  the trustees of a trust, or the members of a partnership, unincorporated association or other entity, that is not a legal person under the law by which it is governed meet any of the conditions specified above (in their capacity as such) in relation to Y, and

  (b)

  X has the right to exercise, or actually exercises, significant influence or control over the activities of that trust or entity.