Controlled Corporation

Controlled Corporation

Controlled Corporation means:
a business entity (like a corporation or company) whose policies are controlled by another firm owning more than 50% of its voting shares; a company not having full management direction of itself. A company that is a subsidiary corporation of another firm and is controlled by this parent company is a controlled corporation. Control for purposes of affiliated group and Section 351 transactions is defined as 80% ownership; for controlled foreign corporations and brother-sister controlled groups of corporations, as more than 50%. Former IRC (check if this IRC provision is current here) § 368(c).


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