The Control Requirement Under § 351 Requires That the Person

question 50

True/False

The control requirement under § 351 requires that the person or persons transferring property to the corporation immediately after the transfer own stock possessing at least 80% of the total combined voting power of all classes of stock entitled to vote and at least 80% of the total number of shares of all other classes of stock of the corporation.

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Definitions:

Petition

A formally drafted plea, often endorsed by numerous individuals, urging those in power to consider a specific issue.

Bankrupt Estate

The total assets of a person or entity that are available for distribution among creditors after declaring bankruptcy.

Proof of Claim

A written statement filed by a creditor in a bankruptcy case stating the amount owed by the debtor.

Creditors

Individuals or entities that are owed money by debtors, typically arising from financial obligations like loans or credit agreements.