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Calculating Indirect Ownership of Subsidiary Stakeholders
Calculating Indirect Ownership of Subsidiary Stakeholders

Figure out an individual's ownership of a parent company in a multi layered Company structure on Pulley.

Lam Kuan Lau avatar
Written by Lam Kuan Lau
Updated over a week ago

If your company has been set up in a multi layer structure on Pulley, you can now allow individual stakeholders to view their indirect ownership in the Parent company.

To learn more about setting up a subsidiary as a stakeholder on Pulley, you can refer to this guide

Watch this video breakdown on how indirect ownership is calculated and enabled.

Below is an example scenario of calculating an indirect ownership. (note that ownership % is calculated based on a Company's issued shares)

  1. the Parent Company: Umbrella Corp

    1. has an authorized share amount of 20,000,000.

    2. has two stakeholders which are their subsidiaries: Subsidiary 1, and Subsidiary 2.

    3. each subsidiary is granted 10,000,000 shares.

    4. at this point, both Subsidiary 1 and Subsidiary 2 hold 50% ownership in Umbrella Corp.

  2. Moving down to Subsidiary 1.

    1. has an authorized share amount of 1,000 shares.

    2. has two stakeholders: John Doe and Jane Smith.

    3. each stakeholder is granted 100 shares each.

    4. Total outstanding issued shares is 200 shares.

    5. At this point, because ownership percentages are calculated based on issued shares, John Doe and Jane Smith hold 50% ownership each in Subsidiary 1.

    6. John and Jane's indirect ownership in Umbrella Corp is therefore 5,000,000 shares each.

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