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Question

Legal Studies Question on Company Law

“Associate company” in relation to another company means a company:

A

In which that other company has a significant influence, but which is not a subsidiary company of the company having such influence and includes a joint venture company

B

Where control of at least twenty per cent of total voting power, or control of or participation in business decisions is given under an agreement

C

Where a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement.

D

All of the above

Answer

All of the above

Explanation

Solution

An associate company refers to a company in which another company has significant influence (typically 20)