How would you differentiate between direct or indirect ownership or control?

Direct owner refers to individuals and entities who directly own shares in any legal entity. For example, if you own 20% of the shares in a particular entity, you become a direct owner. A direct owner need not necessarily be an individual (natural person) and can also be another entity as in the case where the parent company is a direct owner in its direct subsidiary.
A person can be an indirect owner, if a company or any other business entity in which he has shares, owns another company, as illustrated below. For example, if Company 2 is owned to the extent of 20% by Company 1, and Company 1 is owned to the extent of 50% by a natural person, than the said Person is an indirect owner of Company 2 through Company 1, to the extent of 10% ownership in Company 2 (50% of 20%).