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Fill Co also jointly controls coal mines with other entities. The Theta mine is owned by four participants. Fill Co owns 28%, and the other three participants each own 24% of the mine. The operating agreement requires any major decisions to be approved byparties representing 72% of the interest in the mine. Fill Co is considering purchasing one of the participant’s interests of 24%.
sir i just don’t understand how can joint control exists here when decisions require just 72% majority? Joint control needs unanimous (100% voting) consent!
Are you asking me whether this a joint arrangement?
I don’t think so in an accounting sense. I suspect the word joint control is being used in a loose sense.
In any case the question was about what would happen if Fill bought out one of the other investors, not about the current position.
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