Create Corporate Relationships

You can specify corporate relationships where control of a given company is not accurately reflected by its shareholdings.

Corporate relationships are used due to control by other means, such as votes in the board, capital contributions that are not connected to shares, or loans that grant voting or capital rights to the lender. For example, you can create a corporate relationship to record a joint venture.

You can also use corporate relationships if the number of shares held by a shareholder is unknown, but the percentage of control they have is and you want these owners to appear in group structures.

1. Open the company record and go to Ownership > Relationships.

2. Select Wizards > Corporate Relationship Wizard.

   This option opens the one-page wizard. Alternatively, you can select Wizards > Multi-Page Wizards > Corporate Relationship Wizard if you want to use the multi-page wizard.

3. In the Corporate Structure section, select the type of structure, then select what the structure is based on.

   Select the Legal Group Structure option to ensure that the relationship appears in your hierarchy together with the share-based ownership.

   If the relationship should display as part of a user-defined, non-legal structure, select the User-Defined Group Structure option. In this case, you can't view the relationship together with the usual shareholdings, it only appears as part of that custom structure and does not display in legal structures. Administrators can set up user-defined group structures as required in System Tools > List Manager > Corporate Structures. Refer to List Manager for more information.

   If you select the legal group structure option, you need to specify if the relationship is based on votes, capital contribution or both or whether it is based on alternate control. Refer to the following table for more details about each option.

   Legal Group Structure Option	Description
   Legal Voting Structure	Ensures the relationship is displayed when generating group structures based on voting weighting but is not displayed when producing structures based on capital weighting.
   Legal Capital Structure	Ensures the relationship is displayed when generating group structures based on capital weighting but is not displayed when producing structures based on voting weighting.
   Both Voting and Capital	Ensures the relationship is always displayed, that is, when generating group structures based on votes and when generating group structures based on capital.
   Alternate Control	Alternate control enables users to display the control one group entity or parent undertaking has over another group entity or subsidiary undertaking in a legal group structure where the parent-subsidiary relationship does not exist through majority voting rights.

4. In the Corporate Relationship section, select the type of corporate relationship that you want to record such as Holding Company > Subsidiary Company or Shareholder > Company.

   Administrators can create relationship types that display here under System Tools > List Manager > Corporate Relationships. Refer to List Manager for more information.

5. In the Select Left Person section, specify the parent entity in the relationship.

   You must specify the companies or other entities on either side of the relationship type you selected in the previous step. These are termed the left side and right side of the relationship. The left side of the relationship is typically a parent entity and the right side of the relationship is typically a subsidiary entity. Both sides of the relationship default to the company you are in.

6. In the Select Right Person section, specify the child entity in the relationship.

7. In the Control section, specify the details of the relationship, such as the percentage of the amount of control the left entity has over the right, the date the relationship started, and select a method of control and a priority. Select Next.

   The priority you select determines the position of the parent entity in the group structure, that is, when entering partnerships or joint ventures it establishes which parent should show higher up in the group structure. The description you provide appears in the group structure.

8. On the Action page, choose whether you want to save the event as pending or update all records immediately, then select Next.

   In the Tracking section, you can assign the event to a specific user and add a reminder. Refer to Pending events to learn more.

9. On the Documents page, select the documents you want to generate for the event and select Next.

10. On the Finish page, wait while the event and the documents are processed. When the status shows as Completed, select Finish to close the wizard.

    The relationship is now listed on the Corporate Relationships page. If you selected the Both Voting and Capital option when creating the relationship, the corporate relationship is listed under both Legal Voting Structure and Legal Capital Structure.