# The Licensed Legal Services (Interests in Licensed Providers) (Scotland) Regulations 2012, 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.

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Source: https://www.legislation.gov.uk/ssi/2012/154/regulation/2 (the official version)
Page: https://openlegislation.uk/licensed-legal-services-interests-in-licensed-providers-scotland-regulations-2012/regulation-2
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.