{
  "url": "https://openlegislation.uk/economic-crime-transparency-and-enforcement-act-2022/schedule-2/paragraph-18",
  "json_url": "https://openlegislation.uk/economic-crime-transparency-and-enforcement-act-2022/schedule-2/paragraph-18.json",
  "legislation": "ukpga/2022/10",
  "legislation_title": "Economic Crime (Transparency and Enforcement) Act 2022",
  "legislation_url": "https://openlegislation.uk/economic-crime-transparency-and-enforcement-act-2022",
  "path": "schedule/2/paragraph/18",
  "kind": "paragraph",
  "number": "18",
  "heading": "Shares or rights held “indirectly”",
  "text": "(1) A person holds a share “indirectly” if the person has a majority stake in a legal entity and that entity—\n(a) holds the share in question, or\n(b) is part of a chain of legal entities—\n(i) each of which (other than the last) has a majority stake in the entity immediately below it in the chain, and\n(ii) the last of which holds the share.\n(2) A person holds a right “indirectly” if the person has a majority stake in a legal entity and that entity—\n(a) holds that right, or\n(b) is part of a chain of legal entities—\n(i) each of which (other than the last) has a majority stake in the entity immediately below it in the chain, and\n(ii) the last of which holds that right.\n(3) For these purposes, A has a “majority stake” in B if—\n(a) A holds a majority of the voting rights in B,\n(b) A is a member of B and has the right to appoint or remove a majority of the board of directors of B,\n(c) A is a member of B and controls alone, or pursuant to an agreement with other shareholders or members, a majority of the voting rights in B, or\n(d) A has the right to exercise, or actually exercises, dominant influence or control over B.\n(4) In the application of this paragraph to the right to appoint or remove a majority of the board of directors, a legal entity is to be treated as having the right to appoint a director if—\n(a) a person’s appointment as director follows necessarily from that person’s appointment as director of the legal entity, or\n(b) the directorship is held by the legal entity itself.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "I",
      "label": "I1",
      "text": "Sch. 2 para. 18 not in force at Royal Assent, see s. 69"
    },
    {
      "type": "I",
      "label": "I2",
      "text": "Sch. 2 para. 18 in force at 1.8.2022 (except in so far as relating to ss. 7–11 of the Act) by S.I. 2022/876, reg. 3(b)"
    },
    {
      "type": "I",
      "label": "I3",
      "text": "Sch. 2 para. 18 in force in so far as not already in force at 12.10.2022 by S.I. 2022/1039, reg. 2(b)"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2022/10/schedule/2/paragraph/18",
    "retrieved_at": "2026-10-29T08:57:22.170731+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}