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How are indirect interests calculated for purposes of determining whether the ten percent (10%) ownership threshold is met?

April 26, 2017calculated determining indirect Met ownership percent purposes threshold

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How are indirect interests calculated for purposes of determining whether the ten percent (10%) ownership threshold is met?

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Indirect interests are determined by successive multiplication of the ownership percentages in each link of the ownership chain, except that if the ownership percentage for any link in the chain exceeds fifty percent (50%) or represents actual control (e.g., general partners and limited liability corporation members are presumed to have actual control), it shall be calculated as a one hundred percent (100%) interest. If the product of the multiplication process is 10 percent or greater, the interest is disclosable.