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Miss, for PYQ MAR/June 18 Q2(a)(ii)
“Beneficial owner who is not the client.This is the individual or individuals behind the client who ultimately own or control the client or on whose behalf a transaction or activity is being conducted”
Is it refers to ultimately parent Co of the client? Still don’t understand after Google it
Own or control the client not usually the SH?Can I have an example of it?No – a parent/ultimate parent is a corporation/legal entity – it is not an individual.
Beneficial owners ultimately own or control more than 25% of a company’s shares or voting rights (or can otherwise exercise control over the company or its management). So if a company is owned by 5 unconnected individuals, each with a 20% interest, there is no beneficial owner. But if one individual had a 25% interest they would be a beneficial owner.
The reason why it is 25% is because that is enough to block resolutions that require a “supermajority” (i.e. 75% of votes in favour).
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