Quote:
Originally posted by Mmmm, Burger (C.J.)
Someone who actually knows something can elaborate, but I believe that 20% ownership can trigger certain legal obligations in some countries as it is regarded as a "controlling" interest. In the U.S. 10% ownership leads to various SEC filing requirements.
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I think it's more than you have to have >80% for certain tax purposes -- like, for my purposes, if our parent owns at least 80% of some entity, they are part of our controlled group for benefit plan reporting and participation and nondiscrimination standards. I think as far as filing consolidated tax returns, the threshhold is 80% as well. So, it's not that the minority entity doesn't want to have 20%, I think, it's that the majority entity doesn't want to have less than 80%.
ETA or, Cletus is probably right. Whoops.
