Part 5Alternative business structures
Introductory
I271Carrying on of activities by licensed bodies
1
The provisions of this Part have effect for the purpose of regulating the carrying on of reserved legal activities and other activities by licensed bodies.
2
In this Act “licensed body” means a body which holds a licence in force under this Part.
I1I372“Licensable body”
1
A body (“B”) is a licensable body if a non-authorised person—
a
is a manager of B, or
b
has an interest in B.
2
A body (“B”) is also a licensable body if—
a
another body (“A”) is a manager of B, or has an interest in B, and
b
non-authorised persons are entitled to exercise, or control the exercise of, at least 10% of the voting rights in A.
3
For the purposes of this Act, a person has an interest in a body if—
a
the person holds shares in the body, or
b
the person is entitled to exercise, or control the exercise of, voting rights in the body.
4
A body may be licensable by virtue of both subsection (1) and subsection (2).
5
For the purposes of this Act, a non-authorised person has an indirect interest in a licensable body if the body is licensable by virtue of subsection (2) and the non-authorised person is entitled to exercise, or control the exercise of, voting rights in A.
6
In this Act “shares” means—
a
in relation to a body with a share capital, allotted shares (within the meaning of the Companies Acts);
b
in relation to a body with capital but no share capital, rights to share in the capital of the body;
c
in relation to a body without capital, interests—
i
conferring any right to share in the profits, or liability to contribute to the losses, of the body, or
ii
giving rise to an obligation to contribute to the debts or expenses of the body in the event of a winding up;
and references to the holding of shares, or to a shareholding, are to be construed accordingly.