### Question
How does Effects on Recipients define qualified minority shareholder?


### Answer
Under *26 U.S.C. § 304*, **qualified minority shareholder** is defined as:

> any shareholder who owns less than 10 percent (in value) of the stock of the BHC

#### Citation:
  - *26 U.S.C. § 304*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter C-Corporate Distributions and Adjustments > PART I-DISTRIBUTIONS BY CORPORATIONS > Subpart A-Effects on Recipients**

