Author: Dennis Chapman
Published: November 18, 2011
Reading time: 1 minute
This article is 13 years old.
Read our disclaimer keyboard_arrow_down
This website content is intended as a general guide to law as it applies to the motor trade. Lawgistics has taken every effort to ensure that the contents are as accurate and up to date as at the date of first publication.
The laws and opinions expressed within this website may be varied as the law develops. As such we cannot accept liability for or the consequence of, any change of law, or official guidelines since publication or any misuse of the information provided.
The opinions in this website are based upon the experience of the authors and it must be recognised that only the courts and recognised tribunals can interpret the law with authority.
Examples given within the website are based on the experience of the authors and centre upon issues that commonly give rise to disputes. Each situation in practice will be different and may comprise several points commented upon.
If you have any doubt about the correct legal position you should seek further legal advice from Lawgistics or a suitably qualified solicitor. We cannot accept liability for your failure to take professional advice where it should reasonably be sought by a prudent person.
All characters are fictitious and should not be taken as referring to any person living or dead.
Use of this website shall be considered acceptance of the terms of the disclaimer presented above.
All applications for Consumer Credit Licences or their renewal ask whether or not the Company has a Controller. This is defined by the Act as ‘a person in accordance with whose directions instructions the Directors are accustomed to act’, OR ‘a person who is entitled to exercise control over one third or more of the voting power at a General Meeting’.
So the controller of the Company may be the Directors, a single Director holding more than 33% share capital, or any other person who is not Director but holds over 33% shares or a person who, with an associate or associates between them holds 33% or more shares.
In the case of a Sole Proprietor or Partnership the controller may be a financial investor, wife or husband, or a partner who can influence the business.
Some of these provisions were brought in to stop a person who has convictions or are unfit to hold a licence putting the licence in ‘the wife’s name’ and running it themselves. The husband is an associate and therefore the application stands or falls on both or either of their previous records.
