Voting Power
What is Ownership Interest in a Reporting Company
Ownership interest is a catch-all term used by FinCEN to measure the amount of ownership or control in a “reporting company”. A reporting company is the term used by FinCEN to refer to a company that is required to report its Beneficial Ownership Information (or BOI). Ownership interest has different forms, it can represent current…
Read MoreOwnership Interest Value
In addition to the more straightforward analysis of Voting Power as a determinant of the beneficial ownership reporting threshold, an entity must independently evaluate the amount of Ownership Interest Value held by all individuals, as a percentage of the total value of the reporting entity. Of course, the first step in this process is to…
Read MoreCompanies as Beneficial Owners
FinCEN identifies four types of entities that can own companies (called “reporting companies” if they are required to report their Beneficial Ownership Information (or BOI) to FinCEN), and they are individuals, trusts, companies, and other types of entities. Technically, Beneficial Owners can only be individuals. Therefore, if a company has an ownership interest in a…
Read MoreVoting Power
In order to determine which individuals have the requisite beneficial ownership interest to meet the 25% reporting threshold, one of the salient factors is Voting Power. Voting Power is often easy to assess, because it is generally discernable from the entity’s documents. The simplest situation is one where the entity issues shares of one class…
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