What is indirect ownership? Indirect ownership is a general term used whenever one company owns shares of another — How does gain control through

SOLUTION

Indirect ownership is a general term used whenever one company owns shares of another company and that company holds ownership in a third company. Indirect control occurs when a majority of the shares of a particular company (Company D) are held by one or more companies (Companies B and C) that are, in turn, under the control of another company (Company A). By exercising its control over those companies (Companies B and C) the parent (Company A) can exercise control of the company indirectly owned (Company D).