Why Hierarchy Manager Allows Ownership Percentages Exceeding 100%
Summary
In Fenergo’s Hierarchy Manager (Hierarchy Capture task), users can assign ownership percentages to multiple related parties (e.g., shareholders or UBOs) even if the cumulative total exceeds 100%. This is expected system behaviour and not a defect.
Explanation
1. Ownership is Captured Per Relationship
Ownership percentages are maintained at the individual relationship level between entities. The system does not enforce a cumulative validation rule across all related parties in the hierarchy.
Users can independently assign ownership values (e.g., 80% to two shareholders)
There is no built-in constraint ensuring the total equals 100%
This design supports flexibility in capturing real-world complex ownership structures.
2. Hierarchy Manager is Designed for Complex Structures
Fenergo supports hierarchies that can include:
Hundreds or thousands of entities
Multi-layered ownership chains
Cross-ownership and indirect ownership scenarios
Because of this:
Ownership is not treated as a simple flat total
The platform prioritizes relationship modelling over validation constraints
3. Calculated Ownership is Derived, Not Enforced
Fenergo calculates effective ownership dynamically based on:
Direct ownership
Indirect ownership through other entities
Example:
22% direct ownership
40% ownership of an entity that owns 25% → adds 10% indirect
Total calculated = 32%
This calculated value is:
Displayed in the Ownership column
Continuously recalculated based on hierarchy changes
However:
This is a derived value
It does not enforce input constraints on user-entered ownership
4. Ownership & Control Rules Are Guidance-Based
Ownership and Control requirements in Fenergo:
Define which parties must be captured (e.g., UBOs, directors)
May include data/document requirements
But:
They do not inherently enforce cumulative ownership validation
Validation must be implemented via custom policy rules or configuration, if required
Conclusion
The ability to assign ownership percentages that exceed 100% in total is by design in Fenergo. The platform:
Focuses on capturing complex ownership relationships
Provides calculated ownership insights
Leaves cumulative validation to configurable business rules, if needed