If another corporate is holding more than 25% of the target corporation, we need the shareholder list and ID of all shareholders who own more than 25% of the shareholder company.
Shareholder list of the shareholder company should also meet the condition of a proper shareholder list.
There are two types of shares, Common stock and Preferred stock.
- Common Stock: represents ownership in a corporation.
- Preferred Stock: have a higher claim on distributions but usually have no or limited, voting rights in corporate governance.
UBOs are classified based on 'common stock' only, any kind of preferred stocks are not considered such as 'Convertible redeemable preferred stock'.
The reason for checking UBO is to identify the owner that controls the corporation. If a shareholder is another corporate or organization, we also clarify the UBO of the shareholding company.
Procedurally, we collect a document prooving share structure and ID of the shareowner. When you prepare the document, if any corporation is on the paper, please submit the shareholder list of the company for a faster process of KYB.