Prime Benefits
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Manager/Supervisor of Benefits and Payroll Compensation Virginia Farm Bureau
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Southern Pension Services
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Defined Contribution Plan Administrator Pension Investors Corp of Orlando Inc
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Advanced Plan Designs, LLC
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Pension Rights Center
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Carpenter Morse Group
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Howard Simon & Associates
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Small NY Actuarial TPA Firm
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Definiti
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Southern Pension Services
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Question 151: Company A owns 66% of the common stock of Company B and 100% of the nonvoting convertible preferred stock of Company B. The remaining common stock is owned by an unrelated entity. If Company A were to convert all of the preferred stock into common stock, Company A would own more than 80% of the common stock of Company B. Are Company A and Company B in a controlled group? In other words, is convertible preferred stock treated like an option for purposes of the attribution rules? |
Answer: You've hit the issue squarely on the head. |
Answers are provided as general guidance on the subjects covered in the question and are not provided as legal advice to the questioner or to readers. Any legal issues should be reviewed by your legal counsel to apply the law to the particular facts of this and similar situations.
The law in this area changes frequently. Answers are believed to be correct as of the posting dates shown. The completeness or accuracy of a particular answer may be affected by changes in the law (statutes, regulations, rulings, court decisions, etc.) that occur after the date on which a particular Q&A is posted.
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