UKLR 5.3 Controlling shareholders
1An 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.
1Factors which may indicate that an applicant does not satisfy the requirement in UKLR 5.3.1R include:
- (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)
an applicant cannot demonstrate that it has access to financing other than from a controlling shareholder (or an associate thereof).
1Where:
- (1)
an applicant is a sovereign controlled commercial company; and
- (2)
the State which is a sovereign controlling shareholder is either:
- (a)
recognised by the government of the UK as a State at the time the application is made; or
- (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.
- (a)