The Beneficial Ownership of Legal Persons (Guernsey) Law, 2017 (Law) came into force on 15 August 2017 and should be read with the Beneficial Ownership (Definition) Regulations, 2017 (Regulations). From 15 August 2017 all companies, foundations and limited liability partnerships (legal persons) have to provide beneficial ownership information at the time of establishment. All existing legal persons will have to comply with the Law within a given period of time. For foundations and limited liability partnerships compliance is required by 31 October 2017 and for companies compliance is required by 28 February 2018. This latter period is to coincide with the submission of the annual validation which has to be completed by the end of February.

Who is a beneficial owner?

There is a three-tiered approach for determining who is a beneficial owner. The starting point for beneficial ownership in relation to a legal person is: who owns that legal person? A natural person, a beneficial corporate entity or a trust may all “own” a legal person. A beneficial corporate owner is either itself a Guernsey entity or a company listed on a recognised stock exchange. Details of the second and third tiers will follow later in this article.

What constitutes beneficial ownership?

In relation to a company, owners are all persons who hold, directly or indirectly:

More than 25% of the company’s shares;

More than 25% of the voting rights of the company; or

The right to appoint or remove a majority of the board of directors.

In relation to a foundation, owners are persons that:

Hold, directly or indirectly, more than 25% of the voting rights in the conduct and management of the foundation;

Hold the right, indirectly or directly, to appoint or remove a majority of the officials of the foundation;

Are beneficiaries with a vested interest;

Are default beneficiaries upon termination; or

Have a future entitlement to a substantial benefit from the foundation.

In relation to an LLP, owners are all who hold, directly or indirectly, more than 25% of the voting rights in the conduct and management of the LLP.

Read More

Type

Insight

Locations

Guernsey

Share
Twitter LinkedIn Email Save as PDF
More Publications
7 Jun 2022

New Regulations and Requirements for Local Charities

The Charities etc. (Guernsey and Alderney) Ordinance, 2021 (Ordinance) and the raft of regulations t...

Contributors: Lisa Upham
20 May 2022

Lasting Powers of Attorney

The long-awaited Capacity (Lasting Powers of Attorney) (Bailiwick of Guernsey) Ordinance, 2022 (LPA ...

23 Feb 2022

Anonymisation of decisions: an invitation to consider this more but the unscrupulous need not apply!

The adage that ‘justice must not only be done, but must also be seen to be done” derives from a ...

7 Dec 2021

Notaries, E-Apostilles and Technological Changes

Notaries form the oldest branch of the legal profession. Their origins can be traced back to the Ro...

25 Nov 2021

Regulatory Approach to ESG across the Crown Dependencies

New requirements may require investment products to display a label reflecting their sustainability ...

5 Oct 2021

Notaries: Are Simple Certifications a Thing Anymore?

Notaries are primarily concerned with the authentication and certification of signatures, authority ...

30 Jul 2021

Fighting international fraud

First published in New Law Journal, July 2021. Appleby partners Anthony William and Jared Dann an...

Contributors: Jared Dann, Claire Corkish
20 May 2021

The Gender Pay Gap Debate – a response to comments on social media

As a lawyer the majority of articles we write are about a particular case or a legal issue – which...

4 May 2021

New Private Investment Funds in Guernsey

In December 2020, the Guernsey Financial Services Commission (Commission) published a consultation p...

16 Mar 2021

Guernsey Structures - The Cannabis Investment Conundrum

Jurisdictions around the world have adopted different positions in relation to the legality of the c...