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UKLR 5.3 Controlling shareholders

29/07/2024R

An applicant with a controlling shareholder must demonstrate that, despite having a controlling shareholder, the applicant is able to carry on the business it carries on as its main activity independently from such controlling shareholder at all times.

29/07/2024G

Factors which may indicate that an applicant does not satisfy the requirement in UKLR 5.3.1R include:

  1. (1)

    an applicant has granted or may be required to grant security over its business in connection with the funding of a controlling shareholder or a member of a controlling shareholder’s group; or

  2. (2)

    an applicant cannot demonstrate that it has access to financing other than from a controlling shareholder (or an associate thereof).

29/07/2024R

Where:

  1. (1)

    an applicant is a sovereign controlled commercial company; and

  2. (2)

    the State which is a sovereign controlling shareholder is either:

    1. (a)

      recognised by the government of the UK as a State at the time the application is made; or

    2. (b)

      the UK,

    references to a controlling shareholder must be read as excluding a sovereign controlling shareholder in, or for the purposes of, UKLR 5.3.1R to UKLR 5.3.2G.