The requirements for filing of beneficial ownership information for Cayman Islands companies will change with effect from 15 May 2020 in two respects due to international requirements.\u00a0 These changes are expected to affect a relatively small number of companies.<\/p>\n
Note: if you have already notified us that your company is out of scope you can ignore this (see page 6 of https:\/\/www.campbellslegal.com\/ubo\/explanatory-notes.pdf<\/a> as to which companies are out of scope).<\/p>\n Please review the summary at 1 and 2 below to determine whether your company is affected and, if so, complete and return to us the relevant form.<\/p>\n (1) <\/strong>The threshold for an individual to be recorded as a beneficial owner has been reduced from more than<\/u> 25% to 25% or more. This means that someone who holds, directly or indirectly, 25% (exactly) or more of the shares of a Cayman Islands company is now considered a beneficial owner and a beneficial ownership report needs to be filed in respect of them.\u00a0 Previously, only persons who held more than<\/u> 25% of the shares of a Cayman Islands company would be considered a beneficial owner.<\/p>\n If this change affects your company then you will need to complete and return to us form A-1 by 15 May, 2020 at the latest.\u00a0 This can obtained at: https:\/\/www.campbellslegal.com\/ubo\/form-a-1.pdf<\/a><\/p>\n (2) <\/strong>The second change is in relation to entities that are \u201cout of scope\u201d of the beneficial ownership reporting requirements because they are subsidiaries of an \u201cout of scope\u201d parent.\u00a0 The threshold to qualify as a subsidiary has been reduced from more than<\/u> 75% to 75% (exactly) or more and the definition of subsidiary now reads:<\/p>\n For the purposes of this section, a company (\u201ccompany S\u201d) is a subsidiary of one or more [out of scope] legal entities if\u2014 If this change affects your company then you will need to complete and return to us Form C-1 by 15 May, 2020 at the latest.\u00a0 This can obtained at: https:\/\/www.campbellslegal.com\/ubo\/form-c-1.pdf<\/a><\/p>\n
\nThe relevant definition now reads:
\nAn individual (\u201cX\u201d) is a beneficial owner of a company (\u201ccompany Y\u201d) if the individual meets one or more of the following conditions in relation to the company\u2014
\n(a) X must hold, directly or indirectly, 25% or more of the shares in company Y;
\n(b) X must hold, directly or indirectly, 25% or more of the voting rights in company Y;
\n(c) X must hold the right, directly or indirectly, to appoint or remove a majority of the board of directors of company Y.<\/p>\n
\n(a) such legal entities, separately or collectively, hold 75% or more of the shares or voting rights in company S;
\n(b) each such legal entity is a member of company S and, separately or collectively, such legal entities have the right to appoint or remove a majority of its board of directors; or
\n(c) it is a subsidiary of one or more legal entities each of which is itself a subsidiary of one or more legal entities described in subsection (1).<\/p>\n