No, the min 5% share applies only to planes
not maintained to PT requirements. If you maintain it to PT requirements, you can rent it out to 500 Mongolians who all use fake names and each pays you £1000/hour
In the UK, and probably most other places, there is also the tax angle to consider. This is a major gotcha and cost me a 5-digit settlement some years ago. Nowadays, the Inland Revenue are a load of crooks who randomly hit anything to do with horses, boats, planes, prostitution, or especially anything where the business involves a hobby of the owner, and extract settlements. A favourite line of attack is Benefit in Kind. If the plane is owned by a
limited company (and if you are renting it out you
will want to do that, because under the Civil Aviation Act the owner/operator is strictly liable for all damage on the ground) then if the owner also flies the plane, he is vulnerable to an attack under BIK. One defence is for every pilot to be a shareholder, and this is how most UK ltd co. syndicates get around it. Another is for the owner to have no interest in flying and no pilot license. But the sale of hour blocks as proposed by the OP above (which is done by most of the "zero equity" operations that exist around the UK) may well satisfy the requirement for every renter being a shareholder. IMHO it may not because the total shares which can be sold to shareholders cannot exceed 100% (obviously) but these zero-equity operations are able to sell as many blocks as they want, not limited to 24/7/365. I guess they did a deal with HMRC on this.
That is a full and informative reply.
I've always wondered how some of these groups operate.
A friend has told me about a group where they have access to some aircraft owned by the organiser. They all pay a block amount and payments go through another company who owns and operates the aircraft.
The group itself isn't a company so they aren't exactly share-holders and there is no real limit to the number of members.
In short it is a private flying club renting the aircraft from another company.