U.K. May Propose Register of Non-U.K. Companies

On April 5, 2017, the U.K. Department for Business, Energy & Industrial Strategy issued a call for evidence for a register in Companies House of non-U.K. companies that own or buy property in the United Kingdom or that participate in U.K. government procurement.  Responses are due by May 15, 2017.  A register of foreign companies doing business in the United Kingdom to improve transparency has been discussed for many years, and the proposal is narrower than some of these discussions, but it nevertheless purports to be the first of its kind globally.  It would apply to beneficial holders of companies that own or buy U.K. property (including long term leases), or that bid on U.K. government contracts.  “Beneficial owner” would have the same meaning as in the register of significant control persons that was adopted in 2016, in that such a person:  (i) directly or indirectly holds more than 25% of the shares in the company; (ii) directly or indirectly holds more than 25% of the voting rights in the company; (iii) directly or indirectly holds the power to appoint or remove a majority of the board of directors of the company; (iv) otherwise has the right to exercise or actually exercises significant influence or control over the company; or (v) has the right to exercise or actually exercises significant influence or control over a trust or firm that is not a legal entity, which meets one or more of conditions (i) to (iv).