Common use of Direct control Clause in Contracts

Direct control. The determination of direct control is made on the basis of all the relevant facts and cir- cumstances. One entity or group of en- tities (the controlling entity) generally controls another entity or group of en- tities (the controlled entity) for purposes of this paragraph if the controlling en- tity possesses either of the following rights or powers and the rights or pow- ers are discretionary and non-ministe- rial— (i) The right or power both to ap- prove and to remove without cause a controlling portion of the governing body of the controlled entity; or (ii) The right or power to require the use of funds or assets of the controlled entity for any purpose of the control- ling entity.