Question: What should a reporting company report if its ownership is in dispute?

Answer:  If ownership of a reporting company is the subject of active litigation and an initial FinCEN BOI report has not been filed, a person authorized by the company to file its beneficial ownership information should comply with the requirements by reporting:

  • all individuals who exercise substantial control over the company, and
  • all individuals who own or control, or have a claim to ownership or control of, at least 25 percent ownership interests in the company.

If an initial FinCEN BOI report has been filed, and if the resolution of the litigation leads to the reporting company having different beneficial owners from those reported (for example, because some individuals’ claims to ownership or control have been rejected), the reporting company must file an updated BOI report within 30 calendar days of resolution of the litigation.