What do you mean by the actual controller of the company?

The actual controller of a company refers to a person who can actually control the company's behavior through investment relations, agreements or other arrangements, although he is not a shareholder of the company. In the field of securities and funds, the definition of actual controller may include the shareholders of the company. In short, the actual controller is the natural person, legal person or other organization that actually controls the listed company.

Legal basis: Article 2 16 of People's Republic of China (PRC) Company Law.

The term "actual controller" as mentioned in this Law refers to a person who can actually control the company's behavior through investment relations, agreements or other arrangements, although he is not a shareholder of the company.

Difference between controlling shareholder and actual controller of a company

1. A controlling shareholder refers to a shareholder whose capital contribution accounts for more than 50% of the total capital of a limited liability company or whose shares account for more than 50% of the total share capital of a joint stock limited company. Although the amount of capital contribution or the proportion of shares held is less than 50%, the voting rights enjoyed according to the amount of capital contribution or shares held are enough to have a significant impact on the resolutions of the shareholders' meeting and the shareholders' meeting;

2. The actual controller refers to the person who can actually control the company's behavior through investment relations, agreements or other arrangements, although he is not a shareholder of the company.