Why beneficial ownership is a useful concept¶
People can be involved in a number of companies and in different ways. By limiting our understanding of people’s involvement to ownership only, we would miss instances like below.
The person both controls Company 1 and owns half of Company 2. This could be important to know if both companies bid for the same government contract, or if they both appeared in a procurement chain.
It might be equally important to see that a person’s control over a company is greater than one might expect given their financial stake in it.
Uniting ownership and control under the banner of beneficial ownership allows us to represent the complex reality of corporate structures, and the multiple interests a person might have in a company.