Company data check: T-rank assess ownership

In Passfort by Moody's, you can use the T-rank Company data check to find Beneficial Owners of a company.

How the check works

An individual is considered a Beneficial Owner of a company when he/she satisfies one of two criteria:

• The individual’s integrated ownership Integrated ownership is the sum of the share percentage for all ownership links, both direct and indirect, a shareholder has in a company. in the company is above the threshold set in the check’s configuration options.
• Optionally, the individual is a Beneficial Owner according to their Shareholder Power . Shareholder Power indicates a shareholder’s ability to change the outcome of a vote in a company. Shareholder Power indicates a "level of control". Shareholder Power above 99% is considered equal to "in control". Shareholder Power above 50% is significant, and an individual with Shareholder Power above 50% could be considered a Beneficial Owner. The Shareholder Power option might reveal Beneficial Owners in complex cases where the traditional methods fail.

When the check is run, Beneficial Owners are displayed in a list in Passfort and the distance and share percentage is indicated for each one:

The distance is the number of ownership steps between the Beneficial Owner and the company.

The share percentage shows the Beneficial Owner’s integrated ownership.

Note that Shareholder Power isn’t displayed.

The T-rank company check also provides access to a visualisation module, available via a link called "Ownership visualisation":

When you follow the link, an interactive shareholder map opens in a new tab:

For more information on the visualisation module, see Shareholder Maps by T-rank.

Configuration

The T-rank company check can be configured in the Passfort portal. If you have access to the Policy Builder, you can see this page by selecting the Policy Builder tab, selecting Data providers, then selecting the T-rank data provider. To change any of your configuration options, speak to your Passfort account manager.

There are two configuration options:

• Threshold for integrated ownership: The default value is "25", meaning "at least 25.00%". It can be adjusted to any value between 0 and 100. If you put a > sign right in front of the number, the meaning changes from "at least" to "above" the number.
• Include natural persons with significant control: By default, this option is turned on, which means that an individual with high Shareholder Power is listed as a Beneficial Owner even if the integrated ownership is below the threshold.

Additional information

For more information on integrated ownership, see the guide for Shareholder Integrated by T-rank.

For more information on Shareholder Power, see the guide for Shareholder Power and Coalitions by T-rank.

There is background information on the T-rank analytics on the T-rank documentation site.