Which of the following would normally indicate that one entity has significant influence over the activities of another?
A) Ability to appoint the majority of the board of directors of that other entity
B) Ability to appoint at least one person to the board of directors of that other entity
C) Ability to request that a director is appointed to the board of directors of that other entity
D) Ability to submit requests regarding corporate policy to the board of directors of that other entity
Dear tutor, could you pls explain choices C and D. Why these choices are incorrect.
Ask the Tutor ACCA FA
Associate
Asking for a director to be appointed is not the same as being able to appoint a director.
Submitting requests regarding corporate policy is again only asking, not insisting.
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