How is "control" defined for purposes of Sec. 351(a)?

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How is "control" defined for purposes of Sec. 351(a)?

 

A.

Control requires the stock owners to own at least 80% of the common stock of the company. Other classes of stock do not need to meet the 80% ownership rule.  



B.

Control is when the transferors of a company own at least 80% of the total combined voting power of the common stock and at least 50% of the total number of shares of nonvoting stock.



C.

Control is when transferors of a company own at least 50% of a single class of stock immediately after the exchange. If the stock is nonvoting stock, the ownership is tested on a class-by-class basis.



D.

Control requires the transferors as a group to own at least 80% of the total combined voting power of all classes of stock entitled to vote and at least 80% of the total number of share of all other classes of stock. The nonvoting stock ownership is tested on a class-by-class basis.

 
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