# National Security Act 2023, Paragraph 9: Shares or rights held “indirectly”

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

(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.

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Source: https://www.legislation.gov.uk/ukpga/2023/32/schedule/13/paragraph/9 (the official version)
Page: https://openlegislation.uk/national-security-act-2023/schedule-13/paragraph-9
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.