Beneficial ownership disclosure workbook
Scenario A
Narrative
Person 1 indirectly controls 40% of the declaring company's shares (and attached voting rights). This indirect control is via a shareholding agreement by which a nominee, Company B, holds 40% of Company A's shares on behalf of Person 1. Company A itself has full ownership of the declaring company.
Points for consideration
- Under domestic declaration requirements, is Person 1 considered a beneficial owner of the declaring company? If so, would they be disclosed as such by the declaring company?
- If Person 1 is considered a beneficial owner under domestic declaration requirements, how much information about Company B and Company A (and their holdings in relation to the declaring company) is required to be disclosed by the declaring company?
- What would be the consequences of Person 1 not being declared a beneficial owner of the intermediary, Company A?
- If Company A were registered in a foreign jurisdiction would the declaring company's declaration look the same (compared to its being domestically registered)? What if Company B were registered in a foreign jurisdiction?
- If Company A only held a controlling interest of 60% in the declaring company, would Person 1 be considered a beneficial owner of the declaring company?