### Question
How does CORPORATE ORGANIZATIONS AND REORGANIZATIONS define control?


### Answer
Under *26 U.S.C. § 368*, **control** is defined as:

> given such term by section 304(c), and


(ii) in the case of a transaction with respect to which the requirements of section 355 are met, the shareholders described in paragraph (1)(D) shall be treated as having control of the corporation to which the assets are transferred if such shareholders own (immediately after the distribution) stock possessing—


(I) more than 50 percent of the total combined voting power of all classes of stock of such corporation entitled to vote, and


(II) more than 50 percent of the total value of shares of all classes of stock of such corporation.

#### Citation:
  - *26 U.S.C. § 368*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter C-Corporate Distributions and Adjustments > PART III-CORPORATE ORGANIZATIONS AND REORGANIZATIONS > Subpart D-Special Rule; Definitions**

