Regulation 4 Interests in non-solicitor investors which are bodies

(1)

For the purposes of section 64(4) of the Act (factors as to fitness), a person may be regarded as having ownership or control of the body or a material interest in it if—

(a)

the person—

(i)

is entitled to exercise, or control the exercise of, any voting or equivalent rights in the body;

(ii)

would be entitled to receive, if all of the income of the body were to be distributed among the members, any share of the amount so distributed; or

(iii)

would be entitled to receive, if all of the assets of the body were to be distributed among the members (for example, on the winding-up or dissolution of the entity), any share of the amount so distributed; or

(b)

the person has ownership or control of another body or a material interest in it (determined in accordance with the same principles set out in sub-paragraph (a)) which has ownership or control of the body or a material interest in it (determined in accordance with the same principles set out in sub-paragraph (a)).

(2)

Paragraph 1(b) may continue to operate until no further bodies are determined to have ownership or control of the body or a material interest in it.

(3)

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.