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Paragraph 9 Shares or rights held “indirectly”I1I2

United Kingdom

(1)

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

(a)

holds the share in question, or

(b)

is part of a chain of persons—

(i)

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

(ii)

the last of whom holds the share.

(2)

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

(a)

holds that right, or

(b)

is part of a chain of persons—

(i)

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

(ii)

the last of whom holds that right.

(3)

For these purposes, a person (“A”) has a “majority stake” in another person (“B”) if—

(a)

A holds a majority of the voting rights in B,

(b)

A is a member of B and has the right to appoint or remove a majority of the board of directors of B,

(c)

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

(d)

A has the right to exercise, or actually exercises, dominant influence or control over B.

(4)

In the application of this paragraph to the right to appoint or remove a majority of the board of directors, a person (“A”) is to be treated as having the right to appoint a director if—

(a)

any person's appointment as director follows necessarily from that person's appointment as director of A, or

(b)

the directorship is held by A itself.

Annotations

Commencement

I1

Sch. 1 para. 9 not in force at made date, see reg. 1(2)

I2

Sch. 1 para. 9 in force at 22.3.2019 by S.I. 2019/627, reg. 10(1)(h)

Notes on the whole SI

Textual amendments

F1

Regulations extended (with modifications) (31.12.2020 immediately after S.I. 2020/590 and S.I. 2020/951 come into force) by The Republic of Guinea-Bissau (Sanctions) (Overseas Territories) Order 2020 (S.I. 2020/1587), regs. 1, 2, Schs. 1, 2 (as amended (11.12.2025) by The Sanctions (Miscellaneous Amendments) (Overseas Territories) Order 2025 (S.I. 2025/1307), art. 1(1), Sch. 8)