1The examples of the voting tests that operationalize this requirement are set forth in EITF 04‐5, para 7a. and footnotes 10 and 11.
2The concept of participating rights is not the same as “protective rights.” To some extent, all rights possessed by partners, including participating rights, are protective in nature. However, some rights are protective of the partners' interests while not entitling the partners to participate in routine decision making.
3The ordinary course of business excludes self‐dealing transactions with the other partners.
4The FSP clarifies that this disclosure requirement does not impose an obligation on management to actively seek out new or updated information in order to update the assumptions used in determining the remaining life expectancy of the life settlement contracts.