Part 1: The specified conditions
Ownership of shares
491.The first condition is that X holds, directly or indirectly, more than 25% of the shares in company Y (paragraph 2)
Ownership of voting rights
492.The second condition is that X holds, directly or indirectly, more than 25% of the voting rights in company Y (paragraph 3).
Ownership of right to appoint or remove directors
493.The third condition is that X holds the right, directly or indirectly, to appoint or remove a majority of company Y’s directors (paragraph 4).
Significant influence or control
494.The fourth condition is that X has the right to exercise, or actually exercises, significant influence or control over company Y (paragraph 5).
495.This provision will capture individuals who exercise control other than through the first, second or third conditions. ‘Significant influence or control’ is intended to capture individuals with a level of control broadly equivalent to those with an interest in more than 25% of the company’s shares or voting rights.
496.In deciding whether a person has significant influence or control, a person must have regard to guidance about its meaning (paragraph 24). That guidance will be subject to the negative resolution procedure
Trusts, partnerships etc.
497.The fifth condition is that the trustees of a trust or the members of a firm (as defined in section 1173(1) CA 2006) that is not a legal person meet one or more of the other specified conditions (or would do if they were individuals) and that X has the right to exercise, or actually exercises, significant influence or control over the activities of that trust or firm (paragraph 6).
498.The purpose of this condition is to ensure that where an individual (or individuals) other than the trustees or members of the firm has significant influence or control over the activities of the trust or firm, that individual is also identified as a PSC.
