# Economic Crime (Transparency and Enforcement) Act 2022, Paragraph 9: Holding an interest in an overseas entity etc

Extent: E+W+S+N.I.

(1) This paragraph specifies the circumstances in which, for the purposes of paragraph 8—
(a) a person (“V”) is to be regarded as holding an interest in an overseas entity (“entity W”);
(b) an interest held by V in entity W is to be regarded as held through a legal entity.
(2) V holds an interest in entity W if—
(a) V holds, directly or indirectly, shares in entity W,
(b) V holds, directly or indirectly, voting rights in entity W,
(c) V holds, directly or indirectly, the right to appoint or remove any member of the board of directors of entity W,
(d) V has the right to exercise, or actually exercises, significant influence or control over entity W, or
(e) the following conditions are both satisfied—
(i) 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 hold an interest in entity W in a way mentioned in any of paragraphs (a) to (d);
(ii) V has the right to exercise, or actually exercises, significant influence or control over the activities of that trust or entity.
(3) Where V—
(a) holds an interest in entity W by virtue of indirectly holding shares or a right, and
(b) does so by virtue of having a majority stake (see paragraph 18) in—
(i) a legal entity (“L”) which holds the shares or right directly, or
(ii) a legal entity that is part of a chain of legal entities such as is described in paragraph 18(1)(b) or (2)(b) that includes L,
V holds the interest in entity W through L and, where relevant, through each other legal entity in the chain.

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Source: https://www.legislation.gov.uk/ukpga/2022/10/schedule/2/paragraph/9 (the official version)
Page: https://openlegislation.uk/economic-crime-transparency-and-enforcement-act-2022/schedule-2/paragraph-9
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.