Code of Federal Regulations Title 31. Money and Finance–Treasury § 31.800.235 Parent

(1) A person who or which directly or indirectly:

(2) The general partner, managing member, or equivalent of the entity.

(1) Example 1. Corporation P holds 50 percent of the voting interest in Corporations R and S;  Corporation R holds 40 percent of the voting interest in Corporation X;  and Corporation S holds 50 percent of the voting interest in Corporation Y, which in turn holds 50 percent of the voting interest in Corporation Z. Corporation P is a parent of Corporations R, S, Y, and Z, but not of Corporation X. Corporation S is a parent of Corporation Y and Z, and Corporation Y is a parent of Corporation Z.

(2) Example 2. Corporation A holds warrants which when exercised will entitle it to vote 50 percent of the outstanding shares of Corporation B. Corporation A is a parent of Corporation B.

(3) Example 3. Investor A holds 60 percent of the outstanding voting interest in Corporation B. Investor C holds the right to 80 percent of the profits of Corporation B. Each of Investor A and Investor C is a parent of Corporation B.