An entity that is required to fully, or to a specific extent, disclose the structure of its ownership interests, i.e., all levels of ownership of 5% or more (all entities and all individuals at each level of ownership). The lowest percentage of ownership interest (5%) may be direct, indirect or a combination of both. Direct ownership interest can be effected through the holding of stock, equity or an interest in the income of the disclosed entity.
Indirect ownership interest is an ownership interest in another entity that has direct or indirect ownership interest in the disclosed entity. The amount of indirect ownership is determined by applying the percentage of ownership interest at each level. An indirect ownership must be disclosed if it is equal to, or exceeds, the lowest disclosable level (5%) of an ownership interest in the disclosed entity.
Disclosure may also involve other aspects including key management personnel, shareholders, officers, directors, etc. Such disclosures depend on the type of an entity, including corporation, limited liability company, partnership, trust, or unincorporated association. For example, if a disclosed entity is a trust, the names and addresses of the beneficiaries shall be disclosed. For a privately held corporation, disclosures include the names and addresses of all shareholders, officers, and directors. If the disclosed entity is a publicly held corporation, the names and addresses of all shareholders holding a direct or indirect interest of greater than 5%, officers, and directors.
If the disclosed entity is a partnership or limited liability partnership, then the names and addresses of all partners. For a limited partnership or limited liability limited partnership, the names of all partners, both general and limited have to be disclosed. If the disclosed entity is a limited liability company, disclosures shall be made about the names and addresses of all members and managers.
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