Nobody holds 25 percent
Our company has five partners with 20 percent each. Who is the beneficial owner?
The situation
If no individual meets the 25 percent ownership or control test, the person who holds the senior management position is treated as the beneficial owner.
The law
- Cabinet Resolution 109 of 2023: Senior manager treated as beneficial owner where none identified
What it means for you
First check for control by other means, such as a partner who can appoint the majority of directors. If there is none, list the general manager. Example: five equal partners and a hired general manager means the general manager is recorded as beneficial owner.
What to do
- Check ownership shares.
- Check control rights in the memorandum.
- If none, list the senior manager.
- File and keep the reasoning.
We can do this for youBeneficial owner (UBO) register: identifying owners, filing with the registrar and updating changes: AED 750