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2023 1st Quarter Newsletter

Elements of Beneficial Ownership

DIRECT OR INDIRECT INFLUENCE A beneficial owner is not only one whose influence can be seen and noticed but one whose influence can be through other people and not him directly.
RELATIONSHIP/UNDERSTANDING One cannot just claim to be a beneficial owner. There must be a form of agreement or understanding to that effect. The fact that it can be through a contract, arrangement, understanding, relationship or other means entails that it can either be oral or written, express or implied, as long as it leads to the communication of one becoming a beneficial owner.
BENEFIT/ULTIMATE & EFFECTIVE CONTROL The term ‘beneficial owner’ itself explains this last element. One should either have a considerable amount of interest, economic benefit and operational control over a legal person which is a company or body corporate.