A group structure chart is the visual representation of how entities within a corporate group relate to one another.

It shows ownership percentages, jurisdictions, voting rights, and control relationships that underpin governance and compliance.

In large organisations, this chart is not a formality; it is a strategic tool for regulatory filings, tax planning, and transaction readiness.

Without an accurate and current group structure, compliance falters, due diligence stalls, and governance risks multiply.

The Group Structure station typically encompasses:

◼️Ownership Mapping: Names, jurisdictions, and shareholding percentages for all entities.

◼️Voting Rights Disclosure: Identification of special share classes and control arrangements.

◼️Beneficial Ownership Identification: Ultimate controlling parties for AML and KYC compliance.

◼️Cross-Jurisdictional Integration: Alignment of local filings with global structure.

◼️Regulatory Reporting Support: Charts for filings, audits, and investor submissions.

◼️Transaction Readiness: Structures prepared for M&A, IPO, or financing events.

◼️Confidentiality Protocols: Secure handling of sensitive ownership data.

In GLS legal ops, the Group Structure is considered a "Foundational" and a "Repeater" resource within legal operations.

The Foundational Resource: Is responsible for determining the overall performance capabilities of a “critical” legal function. If it is not optimised, the function can never be optimised. 

A Repeater Resource: Supports multiple legal functions, ensuring that structured legal requests improve contracting, dispute resolution, compliance, and advisory services.

The best practice features of Group Structure are as follows:

◼️Real-Time Accuracy: Immediate updates after share transfers or restructurings.

◼️Comprehensive Detail: Jurisdictions, ownership percentages, and voting rights clearly shown.

◼️Standardised Format: Consistent diagrams for internal and external stakeholders.

◼️Cross-Verification: Alignment with statutory registers and regulatory filings.

◼️Confidentiality Controls: Restricted access to sensitive ownership data.

◼️Integration with Governance Systems: Linked to entity management and compliance workflows.

◼️Audit Trail Maintenance: Historical versions retained for reference and due diligence.

◼️Technology Enablement: Digital tools for secure storage and easy updates.

The Group Structure station delivers the following value to the Business:

◼️Compliance Assurance: Supports AML, KYC, and regulatory reporting obligations.

◼️Investor Confidence: Demonstrates transparency and governance maturity.

◼️Transaction Readiness: Accelerates due diligence for M&A and capital raises.

◼️Tax Efficiency: Enables accurate planning across jurisdictions.

◼️Risk Management: Clarifies liability and control relationships within the group.

Group structure charts reduce ambiguity in governance and compliance processes.

They provide a single source of truth for ownership and control relationships.

They minimise delays in regulatory filings and transaction approvals.

They position the legal team as a strategic enabler of transparency and operational efficiency.

The Group Structure station is essential for:

◼️General Counsel and Legal Operations teams.

◼️Board members and senior executives.

◼️Compliance officers and governance professionals.

◼️Shareholder relations teams.

A legal team operating without Group Structure will face a wide range of inefficiencies including:

◼️Regulatory Delays: Filings rejected due to unclear ownership data.

◼️Due Diligence Failures: Transactions stalled or abandoned over incomplete charts.

◼️Investor Distrust: Lack of transparency undermines confidence and valuation.

◼️Operational Confusion: Uncertainty over decision-making authority and reporting lines.

◼️Legal Exposure: Misaligned filings trigger investigations and penalties.

Group structure management is increasingly technology-driven for accuracy and security.

Entity management platforms enable real-time updates and cross-jurisdictional integration.

Technology ensures confidentiality, version control, and seamless linkage to compliance workflows.

People Also Ask (PAA) Questions

1. What is a group structure chart?

A diagram showing ownership relationships and control within a corporate group.

2. Why is a group structure chart important?

Because it supports compliance, transparency, and transaction readiness.

3. Is a group structure chart legally required?

Not always, but regulators, banks, and investors often demand it for complex groups.

4. Who prepares a group structure chart?

Typically the company secretary or governance team, with input from legal and tax advisers.

5. How often should a group structure chart be updated?

Immediately after any change in ownership, control, or corporate structure.

6. What happens if a group structure chart is inaccurate?

Filings can be rejected, deals delayed, and compliance investigations triggered.

7. Can group structure charts be digital?

Yes - digital charts are standard for secure storage and easy updates.

8. What best practices ensure effective group structure management?

Real-time updates, cross-verification with filings, and confidentiality controls.

9. How does group structure impact tax planning?

Ownership and jurisdiction data drive tax efficiency strategies.

10. Why should Legal Ops prioritise group structure governance?

Because ownership transparency underpins compliance, risk management, and investor trust.