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Sir if Company A owns 35% stake in Company B and remaining investors hold less than 10% stake individually in Company B. Will company B be a subsidiary or an associate of company A. Please explain?
It will be an associate.
Given that A owns less than 50% of the shares it would only be classed as a subsidiary if they were able to control and govern the company, which is not the case here.
The conditions for both subsidiary and associate are stated in Chapter 25 of our free lecture notes and the lectures working through the chapter.
Sir if Company A owns 25% in Company B and Company C owns 75% in Company B than will Company B still be an associate for Company A?
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