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Paragraph 9 Shares or rights held “indirectly”I1I2C1

United Kingdom

(1)

A foreign power holds a share “indirectly” if the foreign power has a majority stake in a person and that person—

(a)

holds the share in question, or

(b)

is part of a chain of persons—

(i)

each of which (other than the last) has a majority stake in the person immediately below it in the chain, and

(ii)

the last of which holds the share.

(2)

A foreign power holds a right “indirectly” if the foreign power has a majority stake in a person and that person—

(a)

holds that right, or

(b)

is part of a chain of persons—

(i)

each of which (other than the last) has a majority stake in the person immediately below it in the chain, and

(ii)

the last of which holds that right.

(3)

For the purposes of sub-paragraphs (1) and (2), a foreign power has a “majority stake” in a person if—

(a)

the foreign power holds a majority of the voting rights in the person,

(b)

the foreign power is a member of the person and has the right to appoint or remove an officer of the person,

(c)

the foreign power is a member of the person and controls alone, or pursuant to an agreement with other shareholders or members, a majority of the voting rights in the person, or

(d)

the foreign power has the right to exercise, or actually exercises, dominant influence or control over the person.

Annotations

Modifications

C1

Sch. 13 Pt. 2 applied (with modifications) (1.7.2025) by The National Security Act 2023 (Foreign Activities and Foreign Influence Registration Scheme: Exemptions for Certain Foreign Power Investment Funds, Education, Government Administration and Public Bodies) Regulations 2025 (S.I. 2025/676), regs. 1(2), 2(11); S.I. 2025/674, reg. 2

Commencement

I1

Sch. 13 para. 9 not in force at Royal Assent, see 100(1)

I2

Sch. 13 para. 9 in force at 1.7.2025 by S.I. 2025/674, reg. 2