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

Interests of investors in licensed providers

This section has no associated Executive Note

3.—(1) For the purposes of the definition of “investor” in section 67(6) of the Act (more about investors), a person has ownership or control of the licensed provider or a material interest in it if the person—

(a)is entitled to exercise, or control the exercise of, any voting or equivalent rights in the licensed provider;

(b)would be entitled to receive, if all of the income of the licensed provider were to be distributed among the members, any share of the amount so distributed; or

(c)would be entitled to receive, if all of the assets of the licensed provider were to be distributed among the members (for example, on the winding-up or dissolution of the licensed provider), any share 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.