A self-governed institution is a unique type of legal entity that does not have traditional owners or shareholders. Instead, it is either owned by itself or by its members. This structure is commonly found in various types of organizations, such as funds, foundations, associations and clubs. Unlike typical corporations where ownership is clearly delineated through shares or equity stakes, self-governed institutions operate on principles of collective ownership or stewardship.

‍

In a self-governed institution, the concept of ownership diverges significantly from the conventional model. For example, funds, which are pools of financial resources managed for a specific purpose, do not have individual owners but are controlled by trustees or managing members who act on behalf of the beneficiaries. Similarly, foundations are established to serve specific philanthropic goals and are overseen by a board of trustees or directors who ensure the foundation's assets are used in accordance with its mission. Associations and clubs are typically member-driven, with governance and decision-making processes determined by the collective will of their members rather than by ownership stakes.

‍

Given this unique ownership structure, identifying the ultimate beneficial owners (UBOs) of self-governed institutions requires a different approach compared to traditional entities. In standard corporate environments, UBOs are determined based on ownership percentages - individuals or entities holding significant shares are considered beneficial owners. However, in self-governed institutions, UBOs are identified through special rights or roles within the organization. These might include individuals who hold significant decision-making authority, control substantial financial resources or have the power to influence the institution's activities and policies.

‍

For instance, in a foundation, the UBOs could be the members of the board of trustees who have the authority to direct the use of the foundation’s assets. In an association, UBOs might be key members who have significant voting rights or the ability to steer the association’s strategic direction. This approach ensures that those who have a substantial impact on the organization’s operations and resources are identified and monitored for compliance purposes.