Notes on issues with ownership of an organization

1. Corporation example with holding company:

HC (legal entity) - plays the role of shareholder / investor
C (legal entity) - plays the role of issuer / investee

HC purchases and holds shares (owns shares); in other words, HC holds an ownership interest in, C; this ownership interest is treated as an asset on the books of HC
C has equity which HC holds an interest in, and that is documented as equity on the books of C

In this case, the ownership interest, which represents some percentage of the issued shares in the corporation, is associated with some percentage ownership.

For any DTC-eligible stock, DTC (and other custodians) keep a registry of brokers that they work with, and they track the ownership of shares that are registerd with them by brokers
     the broker tracks the ownership percentage by client
	 Registered owners are tracked by the issuer, but in most cases, the issuer does not know who owns their stock for stock that is exchange traded, and possibly for some that are OTC
	 
	 
2.  LLC example

X (legal entity) - plays the role of an investor
Y (legal entity and LLC) plays the role of investee

X has an ownership interest in Y, but there are no shares, thus that ownership interest, also treated as an asset, per above, is represented as a straight percentage
Y still has equity, which X holds an interest in on their books, but it is a percentage, not shares


3. Consolidation -- 

When HC reports accounting, the shares in C show up as an asset; when C reports accounting, those same shares show up as equity
When the companies' books are consolidated, they wash each other out, and, this is exactly what happens in a merger as well.  

In practice, a new entity that is a holding company of the purchasing organization is created to purchase the holding company of the original bank, 
then that holding company is merged into the purchaser's holding company, and then the bank that is now a subsidiary of the purchaser can either be merged into other banks that the purchaser owns or retained standalone


4.  In (1) above, the shareholder / investor is the entity owner, and per MB's model a constitutional owner; in (2) the investor is the entity owner, but not a constitutional owner;
In the case of a partnership, the partner may or may not hold shares -- in the LLC case the partner has an ownership percentage but not shares, per se.
Thus, under entity owner, we need: Investor, Partner, and Sole Proprietor, but not Constitutional Owner.

Under partner, we have general, limited, and legally incorporated partnership member (which I think was intended to be a partner in an LLC), and still really a limited partner
Under investor we have only investment based de facto controlling interest party, who has de facto control due to an ownership interest (the LLC case from above)
   we should have shareholder in parallel with the de facto controlling interest party here, under investor.
   
Under shareholder, we have voting shareholder, registered shareholder (registered with the company, not by DTC or a broker), public shareholder, which I think we can eliminate - a shareholder in a publicly held company is still a shareholder
and beneficial owner, which is another animal altogether but should be retained

       Beneficial owner is a legal term where specific property rights ("use and title") in equity belong to a person even though legal title of the property belongs to another person. Black's Law Dictionary (2nd Pocket ed. 2001 pg. 508).
	   
I think this belongs much higher up the food chain, under Owner, since this is used in real estate and with respect to trusts in addition to stock-based ownership.

The resulting simplified hierarchy would look as follows: 

Owner
	AccountHolder
	BeneficialOwner
	EntityOwner
		Investor
		Partner
			GeneralPartner
			LimitedPartner
		Shareholder
			RegisteredShareholder
			VotingShareholder
	SoleProprietor
	
This eliminates: 
	TotalOwner and its child, TotalControllingInterestCompany, and its children, DomesticUltimateParent and GlobalUltimateParent, which should be determined through restrictions
	VotingShareholdingCompany and it's children, SignificantShareholdingCompany and OverFiftyPercentControllingInterestCompany
	LegallyIncorporatedPartnershipMember (doesn't exist)
	CorporateLimitedPartner and NaturalPersonLimitedPartner
	InvestmentBasedDeFactoControllingInterestParty
	
holdsEquityIn --> holdsEquity  (range is equity not an organization)


Example: 

HoldingCompany (which is a shareholder and investor in the corporate case, investor in the partnership / LLC case) holds an interest in Company
That interest is held as an asset and represents some % interest in Company

Company (issuer / investee) issues shares / has equity

Equity, regardless of the kind of organization, is equity in the issuer / investee and an asset from the perspective of the investor / shareholder


has equity should be the inverse of holds an interest in