Control without 25 percent shares
My investor has only 15 percent but can appoint the board. Is he a beneficial owner?
The situation
Yes, potentially. Control can come from the power to appoint or remove most directors, not only from shares.
The law
- Cabinet Resolution 109 of 2023: Beneficial owner includes persons with control
What it means for you
Example: an investor with 15 percent but a right to appoint three of five directors controls the company and should be listed. Read the shareholders' agreement carefully for such rights.
What to do
- Review the shareholders' agreement.
- Identify board appointment rights.
- List controllers as beneficial owners.
- File and keep the analysis.
We can do this for youBeneficial owner (UBO) register: identifying owners, filing with the registrar and updating changes: AED 750