Legislation – National Security Act 2023
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Schedule 13Control of a person by a foreign power
Part 2Interpretation of Part 1
Shares or rights held “indirectly”
9
(1)
A foreign power holds a share “indirectly” if the foreign power has a majority stake in a person and that person—
(a)
holds the share in question, or
(b)
is part of a chain of persons—
(i)
each of which (other than the last) has a majority stake in the person immediately below it in the chain, and
(ii)
the last of which holds the share.
(2)
A foreign power holds a right “indirectly” if the foreign power has a majority stake in a person and that person—
(a)
holds that right, or
(b)
is part of a chain of persons—
(i)
each of which (other than the last) has a majority stake in the person immediately below it in the chain, and
(ii)
the last of which holds that right.
(3)
For the purposes of sub-paragraphs (1) and (2), a foreign power has a “majority stake” in a person if—
(a)
the foreign power holds a majority of the voting rights in the person,
(b)
the foreign power is a member of the person and has the right to appoint or remove an officer of the person,
(c)
the foreign power is a member of the person and controls alone, or pursuant to an agreement with other shareholders or members, a majority of the voting rights in the person, or
(d)
the foreign power has the right to exercise, or actually exercises, dominant influence or control over the person.