This section will help us to understand more about the ownership of your business as well as any other connected parties. Beneficial owners:
A beneficial owner is an individual or an entity who owns or exercises control over your business through either; •their shareholding or other ownership interest in your business; •control over the voting rights; •exercising other control over the composition and/or the voting of the Board of Directors A beneficial owner can also be the party on whose behalf a transaction or activity is being conducted. Ultimate beneficial owner (UBO):
UBO is usually an individual who ultimately owns a legal entity and/or the person on whose behalf a transaction is being conducted. The UBO is any individual or government body that owns, has the right to vote, or has the power to sell or direct the sale of a class of the business’ voting securities of an Intermediate Owner. An intermediate beneficial owner (IBO):
IBO is an entity or legal arrangement (e.g. a structure such as a Trust or Foundation) identified as existing within the corporate structure that sits between your business and the UBO (as defined above) in the ownership chain. A corporate / partnership firm will have one or more ultimate beneficial owner(s) / partner(s). This might be an individual or a sovereign (state owners) entity or family group of individuals.
Key controller (KC):
Is someone who is elected or appointed to exercise more direct control over the legal entity, by participating in the governance or senior executive activities of the business. Key controllers typically set the strategic direction of the entity. The title given to a key controller varies. Most commonly, a key controller will include the Chief Executive Officer (CEO), Chief Financial Officer (CFO), managing partner and chairman of the board. Usually, control is exercised jointly with other directors / senior executive management. Director:
A director is an appointed member of a business board and may be either an executive or a non-executive. The roles and responsibilities of a board of directors will vary according to the type of entity. For entities, certain directors and managers will be classified as key controllers, due to their ability to exercise significant control over an entity and to have a substantial influence over the day-to-day management of the business. Direct appointee:
A direct appointee is a person authorised by the business to act on its behalf for the banking relationship and also to delegate authority to others to represent the business in more limited circumstances, e.g. the company secretary. The direct appointees may appoint authorised signatories. Direct appointees cannot be a key controller but are typically appointed by key controllers or the board of directors. Other related party:
Other related parties support or provide advice to the business, but sit outside of the management or ownership structure.
Examples of other related parties include: lenders in syndicated lending deals, arranger in Special Purpose Vehicles, insurance manager in captive insurance.