How is the size of person test in the formation of corporate joint ventures (§ 801.40) affected?
For any person contributing to the formation who will acquire in excess of $200 MM in voting securities of the NEWCO, the size of person test will be inapplicable. However, that person’s size will be included in determining whether the size of person test is satisfied for any other persons contributing to the formation who will acquire between $50 MM and $200 MM in voting securities.
