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

  1. Review the shareholders' agreement.
  2. Identify board appointment rights.
  3. List controllers as beneficial owners.
  4. 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

Related