Table of Contents
What is it? #
- Refers to who owns, manages, and controls an entity.
- Includes details on shareholders, directors, and other influential persons.
How to identify it: #
Document Collection #
- Official incorporation documents which list the entity’s directors and shareholders.
- Memorandum and Articles of Association or Constitution.
- Share registry to see the distribution and classes of shares, which indicates ownership percentages.
- Information available on the entity’s website or published annual reports.
- Information available on the entity from public sources (e.g. annual returns and filing with the Accounting and Corporate Regulatory Authority (ACRA), ACRA’s business profile)
Identification of Beneficial Owners #
- Determine who directly or indirectly owns more than a certain percentage (typically 25%) of the company or can control the company through other means, such as voting rights, agreement, or other influence.
Assessment of Control #
- Identify key individuals who may not own significant shares but control the entity through their position, such as directors or senior managers.
- Understand any arrangements, like shareholder agreements or family trusts, that confer control to individuals without direct share ownership.
Key components of control structure: #
- Management Authority: Who makes key decisions?
- Voting Rights: Who can vote and how much power do they have?
- Legal Arrangements: Trusts or agreements that affect control.
