Substantial Control Basics
What is subtantial control ?
An individual can exercise substantial control over a reporting company in four different ways. If the individual falls into any of the categories below, the individual is exercising substantial control:
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The individual is a senior officer (the company’s president, chief financial officer, general counsel, chief executive office, chief operating officer, or any other officer who performs a similar function).
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The individual has authority to appoint or remove certain officers or a majority of directors (or similar body) of the reporting company.
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The individual is an important decision-maker for the reporting company.
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The individual has any other form of substantial control over the reporting company.
What are important decisions ?
Important decisions include decisions about a reporting company’s business, finances, and structure. An individual that directs, determines, or has substantial influence over these important decisions exercises substantial control over a reporting company.
