Problematic of Defining the Concept of the Beneficial Owner in Capital Companies, Associations and Foundations

Abstract

This study is focused on the problematic of defining beneficial owners in three types of legal persons: capital companies, associations and foundations. In this regard, the issue of determining beneficial owners of foreign merchants through their branches and representative offices is also examined. The aim of this study is to provide well-reasoned arguments for necessitating a more solid elaboration of legal framework on the beneficial owners in Latvia. In order to achieve this aim, doctrinal methodology is applied by analysing legal norms on the definitions of beneficial owners of different legal subjects. Furthermore, the case study method is used to examine the state practice on registering beneficial owners. Additionally, analytical method and case-law method are also used to support the arguments. The findings of this study demonstrate that public register frequently contains information on beneficial owners which is not entirely accurate and the inconsistent interpretation of the rules on defining the concept of the beneficial owner is due to their incompleteness and rather general nature.