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More foreign earnings and the backing of a big foreign shareholder would make investors rate CSN more highly.
Therefore, no withholding would be required with respect to that corporation's subsequent liquidating distribution to a foreign shareholder of property other than a U.S. real property interest.
Laws, regulations, and actual legal practice also treat the two types of companies differently, based on whether a company has a foreign shareholder.
Earlier this week, a leading foreign shareholder announced the government had agreed to change the company's charter to increase scrutiny of Mr. Chubais's plan.
Though he could call for a special election, since the company's board is up for re-election in June, foreign shareholder activists have long struggled to make meaningful changes at Japanese companies.
Shares of the KT&G, a South Korean tobacco maker threatened with a hostile takeover, rose after Franklin Mutual Advisors, its largest foreign shareholder, decided to support Carl Icahn's and Warren Lichtenstein's board nominees and seek higher dividends.
Similar(43)
Foreign shareholders have increased their holdings in recent years as traditional cross-shareholdings between banks and their corporate chums have unravelled (see chart).
So companies now have substantial foreign shareholders.
"It does go to foreign shareholders.
(iii Distributions by certain domestic corporations to foreign shareholders.
And its management strategy finds defenders among foreign shareholders.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com