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Hi Mike, I know control is not always about majority ownership(>51%) so what if an investor has 49% ownership and he delegates to me his voting rights on decision making and I myself have 2% ownership. in this case do I have to consolidate? Thank you Mike.
That depends on how the delegated power is worded. If you have the expectation that the 49% holder will not change his / her mind and so long as you are acting without taking instruction from the 49er, then arguably, yes, you are in control. But the practicalities are so remote as to be 100% guaranteed that it won’t happen, neither in life nor in the exam room.
If you as a 2%er act in accordance with 49er’s instructions, then 49er is in control and it is they that should consolidate
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