Examples of Direct and Indirect Ownership

Scenario 1 – Illustrative example of an Ownership Structure for ABC Inc. who has two direct owners. In this example, Robert Jones’ (in blue) ownership is less than 25%, so John Smith (in yellow) is the only direct Beneficial Owner and needs to be documented as such.

Scenario 2 – Illustrative example of an Ownership Structure for DEF Inc. who has both direct and indirect owners. In this example, James Long (in blue) in not a Beneficial Owner as his ownership is less than 25%, however, both Jane Campbell and Jim Wilson (in yellow) are considered Beneficial Owners as both their ownership is greater than 25%. Jane Doe is a direct Beneficial Owner and Jim Wilson is an indirect Beneficial Owner (through ownership of MNO Holdings Ltd.), and both need to be documented as such.