10 - UBO based on special rights

Owned by Thomas Frickh
Last updated: Jul 06, 2023
2 min read

An individual can be UBO based on special rights, e.g., veto important decisions or replace the majority of the board of directors.

You can be considered as a UBO if you have controlling powers of an entity without having the formal ownership or voting right (above 25%). In the Avallone platform, we call that “special rights.” There can be many reasons for being considered a UBO with special rights. Each company needs to make that assessment itself. The platform makes registering the special right in the ownership and control structure easy.

In the below example:

  • The first UBO is based on the 80% ownership and voting rights

  • The second UBO is based on special rights since the 20% ownership and voting rights do not make him a UBO

This is how the ownership and control structure is created.

Special rights can be added as a part of the “ownership and/or voting rights” feature when you are adding a role to an officer.

We have created a list of different special rights. Two of them are explained in example 6 (Executive Management) and example 8 (Board of directors). The rest of the options have the same function, select the one which fits the company's need.

 

In the UBO tab (Ultimate Beneficial Ownership), you can see all the officers defined as UBO.

The reason for UBO status is the special rights. Each of the two special rights qualifies the individual to become a UBO.

If you have any queries or require additional assistance, please feel free to use the comment function or reach out to support@avallone.io. Our customer success team is always available to help you and ensure that you derive the most out of our platform.