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Sword and Shield

Effective strategies for full practical company control without legal connections

C

Cam

New member
Oct 13, 2019
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#1
I've just been reading a fascinating thread (27918) in this forum on UBO. This comment is especially interesting to me:
'it's extremely easy in practice to have no legal connection and full practical control of a company.'

Who here has knowledge of some effective strategies to have full practical control without the controlling person being legally connected to a company?

No great detail needed but if you could share your experience to outline one or more strategies, that would be very useful to all of us!

Thank you!
 
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#2
Hi,

I would say that first, it depends on the goal you wish to achieve and the general situation. But I would say it is not extremely easy... ns2 Especially if you wish to achieve real asset protection (even creditors know that you have interest in certain assets they could not win a case against you take that asset), also tax benefits (even tax authorities of your country know that you have interest in certain assets they could not tax you).

You can look more information about securitization, unit-linked life insurance, discretionary and irrevocable trusts/foundations. These are the main vehicles used to achieve these goals.

I hope this helps.
 
#3
Many thanks for the reply Gediminas! This sounds like appropriate risk-averse advice.

What about some slightly more gung ho advice? (Perhaps set aside bulletproof asset protection and focus on deniability of any legal association with the company.) Who will go out on a limb with some more risky ideas on practical control of a company without any legal connection? In reading that earlier thread, it seems that Martin Everson and Alex115 might have some ideas? Guys? Anyone else?
 
#6
You just need to have a trusted party (childhood friend etc) run the business, manage accounts etc. I mean if Vladimar Putin can do it and he is high profile then you can do it too.
 
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#9
Martin Everson said:
You just need to have a trusted party (childhood friend etc) run the business, manage accounts etc. I mean if Vladimar Putin can do it and he is high profile then you can do it too.
Click to expand...

Basically this, although I'll go into a bit more detail here with a practical example:

1. Get a trusted guy/gal (or a few) who owns the company and is an appointed director.
2. Get a trusted accountant who manages cash flows and accounts etc. and has power of attorney over the company.
3. Get a trusted lawyer who has power of attorney and manages everything else (deals, acquisitions etc.).

In practice, you still have full practical control of this company and I can give you about 10 different ways to distribute profits back to yourself with no legal (or should I say, prosecutable) trace.

P.S. Trust is not a factor since these people can never really "screw you over" since they bear full legal responsibility for the company's actions. ;)
P.S.2. PoA, although a legal connection to a company, in most countries still makes you absolutely unprosecutable for the company's actions so if you don't mind having a legal connection in that case, you can directly manage the company yourself if you wish.
 
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#10
Now this is getting interesting ... wonderful and thank you all. Can we list a handful (e.g. 4 or 5) hypothetical methods to distribute profits back "with no prosecutable trace"?
 
#11
Cam said:
Now this is getting interesting ... wonderful and thank you all. Can we list a handful (e.g. 4 or 5) hypothetical methods to distribute profits back "with no prosecutable trace"?
Click to expand...

1. Cash
 
#12
Martin Everson said:
1. Cash
Click to expand...
Banking it can be a pain, i took lump sum for my south african holiday 5 yrs back. I returned with just over £4K went and banked the funds. two weeks later got a letter to explain why and from where the funds were from. Had to send them a statement from the other bank and explained the funds were what i had taken out a month or so and didnt get to spend it all. so even such sums get queried damn!
 
#14
Alex115 said:
Basically this, although I'll go into a bit more detail here with a practical example:

1. Get a trusted guy/gal (or a few) who owns the company and is an appointed director.
2. Get a trusted accountant who manages cash flows and accounts etc. and has power of attorney over the company.
3. Get a trusted lawyer who has power of attorney and manages everything else (deals, acquisitions etc.).

In practice, you still have full practical control of this company and I can give you about 10 different ways to distribute profits back to yourself with no legal (or should I say, prosecutable) trace.

P.S. Trust is not a factor since these people can never really "screw you over" since they bear full legal responsibility for the company's actions. ;)
P.S.2. PoA, although a legal connection to a company, in most countries still makes you absolutely unprosecutable for the company's actions so if you don't mind having a legal connection in that case, you can directly manage the company yourself if you wish.
Click to expand...
I don't think your ideas worked for Kim Dotcom
 
#16
Martin Everson said:
You just need to have a trusted party (childhood friend etc) run the business, manage accounts etc. I mean if Vladimar Putin can do it and he is high profile then you can do it too.
Click to expand...
Who is able to do the same as Putin other then the rest of the corrupt politicians? You need someone to be in a country where they don't tax you on offshore entities you may own or where the owner has to pay no tax, for instant Switzerland, Zug or Lugano - I don't take all the other issues there may be into this discussion, it's just an example.
 
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#17
Admin said:
Who is able to do the same as Putin other then the rest of the corrupt politicians? You need someone to be in a country where they don't tax you on offshore entities you may own or where the owner has to pay no tax, for instant Switzerland, Zug or Lugano - I don't take all the other issues there may be into this discussion, it's just an example.
Click to expand...

Apologies for getting involved in your conversation, but we never mentioned one's desire to avoid getting their offshore assets taxed in their country of residence. That would make things quite a bit more difficult for sure.

One of the best ways I've seen to not be genuinely prosecuted for borderline illegal activities is.....to pay your taxes. As funny and absurd as that sounds, I've seen it happen over and over again in my home country. Sure....some other agency will "fine" you but....rest assured that the easiest way to end up in prison is tax evasion which as I said...I find absolutely insane. Oh well...capitalism being capitalism.
 
#18
Alex115 said:
Apologies for getting involved in your conversation, but we never mentioned one's desire to avoid getting their offshore assets taxed in their country of residence. That would make things quite a bit more difficult for sure.
Click to expand...
Sorry to correct you, but my comment was in regards to this one:
Martin Everson said:
You just need to have a trusted party (childhood friend etc) run the business, manage accounts etc. I mean if Vladimar Putin can do it and he is high profile then you can do it too.
Click to expand...

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