Who Controls Your Asset?

We recently had cause to investigate the ownership structure of a very well-establishedand reputable corporate service provider (a “CSP”). Most of our clients will use a CSP toact as corporate director and, often, corporate shareholder of the asset-owning entity, because it distances the beneficial owner from risks and adds a layer of privacy on publicregisters. Furthermore, it is often necessary because an entity will be incorporated in ajurisdiction for tax reasons, and a local director is required.

I was surprised to learn that the CSP in question was one small part of a group of hundreds of companies, which were incorporated in countries (almost literally) allaround the world. The owning structure (of the CSP) ultimately led to one gentleman, whoowns a substantial private equity company in New York.

Now, we are not suggesting (at all) that anything is remiss with the structure, but if yourasset is owned by a corporate shareholder/CSP and held in trust for you as the owner,you do want to know who ultimately controls your very expensive aircraft and/or yacht.

Jonathan Russell
Partner Superyachts: