State of New Jersey Definition of Disclosure of Corporate Ownership
The laws of every state permit the creation of business associations. In New Jersey, a corporation must register with the Secretary of Treasury and pay a fee to receive the protections of limited liability. Upon registering, a New Jersey corporation must also file a report annually with the Secretary of Treasury disclosing additional information about the corporation.
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Annual Filings
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In the annual report to the New Jersey Secretary of State, a corporation must disclose certain information, including the name of its registered agent and the names and addresses of directors and officers. Because officers and directors, particularly of a close corporation, will have an ownership stake in the corporation, this is one means by which an ownership interest is disclosed.
Government Contracts
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Another situation in which a corporation must disclose its ownership structure is when a corporation enters into certain business transactions with the state of New Jersey. For instance, a housing corporation that builds a subdivision must disclose any owners with more than a 10 percent stake in the corporation. Additionally, any corporation that intends to enter into a contract with the state government must disclose any owner with a 10 percent stake in the bidding corporation, as well as any political contributions made by owners with more than a 10 percent stake.
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Methods
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A corporation discloses information by making a filing with the State of New Jersey. The type of filing and the method by which a filing is made depends on the situation. For instance, an annual filing for a corporation must be made to the Secretary of Treasury. A corporation who wishes to conduct business with the state government must also disclose its ownership structure to the Secretary of Treasury. However, a corporation that seeks to build a subdivision must disclose its ownership information to the planning board where the subdivision is being built.
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