Determination of Ownership or Control Interest Percentages Clause Samples
The "Determination of Ownership or Control Interest Percentages" clause defines how to calculate the percentage of ownership or control that a party holds in an entity. This typically involves specifying the method for measuring direct and indirect interests, such as through shareholding, voting rights, or other forms of control, and may include rules for aggregating interests held by related parties. By establishing a clear framework for determining these percentages, the clause ensures transparency and consistency in identifying who has significant influence or control, which is essential for compliance, reporting, and decision-making purposes.
Determination of Ownership or Control Interest Percentages. Direct Ownership or Control Interest is determined by multiplying the percentage of interest that a person (individual or corporation) owns by the percentage of Insurer’s assets used to secure the obligation. By way of example, if a person owns ten percent (10%) of a note secured by sixty percent (60%) of Insurer’s assets, the person’s direct interest in Insurer is six percent (6%) and must be reported. Indirect Ownership or Control Interest is determined by multiplying the percentage of ownership in each entity. By way of example, if a person owns ten percent (10%) of the stock in a corporation which owns eighty percent (80%) of Insurer’s stock, the person’s indirect interest in Insurer is eight percent (8%) and must be reported.