diff --git a/content/manuals/admin/company/owners.md b/content/manuals/admin/company/owners.md
index 6f50a39e10..6ce17576fb 100644
--- a/content/manuals/admin/company/owners.md
+++ b/content/manuals/admin/company/owners.md
@@ -12,8 +12,14 @@ A company can have multiple owners. Company owners have company-wide
 observability and can manage company-wide settings that apply to all associated
 organizations. In addition, company owners have the same access as organization
 owners for all associated organizations. Unlike organization owners, company
-owners don't need to be member of an organization. When company owners aren't a
-member in an organization, they don't occupy a seat.
+owners don't need to be member of an organization.
+
+> [!NOTE]
+>
+> Company owners do not occupy a seat unless one of the following is true:
+>
+>   - They are added as a member of an organization under your company
+>   - SSO is enabled
 
 ## Add a company owner
 
diff --git a/content/manuals/admin/faqs/company-faqs.md b/content/manuals/admin/faqs/company-faqs.md
index 9e8efcbc7f..33e0fb425e 100644
--- a/content/manuals/admin/faqs/company-faqs.md
+++ b/content/manuals/admin/faqs/company-faqs.md
@@ -32,14 +32,22 @@ You can add a maximum of 10 company owners to a single company account.
 
 ### Do company owners occupy a subscription seat?
 
-Company owners don't occupy a seat in any organization unless they are added as a
-member of the organization. Since company owners have the same access as
-organization owners for all organizations associated with the company, it is not
-necessary to add company owners to an organization.
+Company owners do not occupy a seat unless one of the following is true:
 
-Note that when you first create a company, your account will be both a company
-owner and an organization owner. Your account will occupy a seat as long as
-you're an organization owner.
+- They are added as a member of an organization under your company
+- SSO is enabled
+
+Although company owners have the same access as organization owners across all
+organizations in the company, it's not necessary to add them to any
+organization. Doing so will cause them to occupy a seat.
+
+When you first create a company, your account is both a company owner and an
+organization owner. In that case, your account will occupy a seat as long as
+you remain an organization owner.
+
+To avoid occupying a seat, [assign another user as the organization owner](/manuals/admin/organization/members.md#update-a-member-role) and remove yourself from the organization.
+You'll retain full administrative access as a company owner without using a
+subscription seat.
 
 ### What permissions does the company owner have in the associated/nested organizations?