Common use of Indirect ownership interest Clause in Contracts

Indirect ownership interest. The amount of indirect ownership interest is determined by multiplying the percentages of ownership in each entity. For example, if A owns 10 percent of the stock in a corporation which owns 80 percent of the stock of the disclosing entity, A’s interest equates to 8 percent indirect ownership interest in the disclosing entity and must be reported. Conversely, if B owns 80 percent of the stock of a corporation which owns 5 percent of the stock of the disclosing entity, B’s interest equates to 4 percent indirect ownership interest in the disclosing entity and need not be reported.

Indirect ownership interest. Ownership interest in an entity that has direct or indirect ownership interest in the disclosing entity. The amount of indirect ownership interest in the disclosing entity that is held by any other entity is determined by multiplying the percentages percentage of ownership interest at each level. An indirect ownership interest must be reported if it equates to an ownership interest of five percent (5%) or more in each the disclosing entity. For example, if A Example: If “A” owns 10 ten percent (10%) of the stock in a corporation which that owns 80 eighty percent (80%) of the stock of the disclosing entity, “A’s ’s” interest equates to 8 an eight percent (8%) indirect ownership interest in the disclosing entity and must be reported. Conversely, if B owns 80 percent of the stock of a corporation which owns 5 percent of the stock of the disclosing entity, B’s interest equates to 4 percent indirect ownership interest in the disclosing entity and need not be reported.