CGOV.2:5.2 - An indirect economic interest

A person holds 60% of Parent, which holds 60% of Subsidiary. Assume the chosen distributions pass proportionally through both companies without deductions, preference rights or other changes. The person’s indirect participation in that distribution is 0.6 × 0.6 = 36%.

Those assumptions calculate economic participation only. To answer whether the person can cause Subsidiary to make a particular decision, recover the voting, appointment, delegation and duty relations along the path. A 36% figure supplies no such operation. Even a demonstrated ability to determine shareholder votes at both companies leaves the powers and duties of their boards to be examined for the proposed act.