Corporation A is equally owned by 10 unrelated individual shareholders.Corporation B is 100 percent owned by one of the shareholders that owns stock of Corporation A.As a result of this common stock ownership, Corporations A and B are members of a brother-sister controlled group.

Question

Quizplus · Accepted Answer

A brother-sister controlled group requires two or more corporations where five or fewer individuals, estates, or trusts own a controlling interest (at least 80%) in each corporation and have effective control (more than 50% identical ownership) in each corporation. In this scenario, Corporation A is equally owned by 10 unrelated individuals, and Corporation B is 100% owned by one of those individuals, which does not meet the criteria for a brother-sister controlled group.

Corporation a Is Equally Owned by 10 Unrelated Individual Shareholders