Disclosure of controlling party

Disclosure of controlling party

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If husband and wife are 50/50 shareholders is there a controlling party? Although company law persists with the old-fashioned notion that a husband controls his wife's affairs (and vice versa - perhaps not so old-fashioned!) as far as disclosure of beneficial interest is concerned, what about the controlling party disclosure?

What if it is 50/50 but husband manages the company on a day-to-day basis - is that control for disclosure purposes?

What if shares are 49/51 husband/wife and he is sole director? Director's report will show him as 100% beneficial owner but is she disclosed as controlling party?
David Lochhead

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Euan's picture
By Euan MacLennan
30th Jun 2006 17:24

Yes
Under the FRSSE, which will be the standard used for most husband & wife companies, related parties specifically include both investors and their close families and directors and their close families. In all 3 of your scenarios, they are jointly the controlling party.

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By wdr
02nd Jul 2006 18:43

Just use straightforward wording- overseas holders are surprised
All you need is simple wotding such as :-
'The controlling party is Mr[Mrs] X and his[her] family'.

As this requirement is not universallly followed in the EU, family controlled companies from say Germany are shocked by the requirement to show the ultimate controlling party of their UK subsidiary or affiliated company, something they don't have to show at home, and frequently have made signifcant efforts to hide.

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