3. Special rules for indirect control
Indirect control refers to a situation where there is at least one intermediate entity or person between the corporation and the corporate interest holder(s) at the top of the chain of intermediaries. The indirect control rules require you to look through intermediate entities or persons in a chain of control until you have identified the natural person who indirectly controls the shares or rights of the company.
Excluded intermediate entities or persons
If you encounter an excluded intermediate entity or persons when looking through a chain of control, you are not required to keep looking through that entity or person; you can stop there and do not have to list anyone as an interest holder in that chain of control.
If any other shares or votes of the company are held in a separate chain of control, you still need to look through intermediate entities or persons in that separate chain of control to determine if someone has indirect control of those other shares or rights and needs to be listed as significant individual in the company’s register. See the example below.
Example - Excluded intermediate entities or persons
In the diagram above, Corporation Z will indicate on its transparency report that there are no corporate interest holders as the Public Guardian and Trustee (PGT) is an excluded intermediate entity or person. As a result, Corporation Z does not need to look past the PGT and may stop tracing the chain of control.
By contrast, Corporation A must list Individual 1 in their transparency report as that individual has indirect control of the other 50% of the interest in land.