Regulation 2 Majority interests in licensed providers

(1)

For the purposes of section 49(1) of the Act (majority ownership), the qualifying investors in an entity are regarded as having at least a 51% stake in the total ownership or control of that entity only if, taken together, they—

(a)

are entitled to exercise, and control the exercise of, 51% or more of the voting or equivalent rights in the entity;

(b)

would be entitled to receive, if all of the income of the entity were to be distributed among the members, 51% or more of the amount so distributed; and

(c)

would be entitled to receive, if all of the assets of the entity were to be distributed among the members (for example, on the winding-up or dissolution of the entity), 51% or more of the amount so distributed.

(2)

In the operation of paragraph (1)—

(a)

any rights that a person has as a loan creditor are to be disregarded; and

(b)

the references to “members” are to be construed as—

(i)

in relation to a company, the holders of shares in the company;

(ii)

in relation to a limited liability partnership, the members;

(iii)

in relation to a partnership, the partners; and

(iv)

in relation to any other body or association, the members of that body or association.