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Exactly 50% of voting right – subsidiary or associate?

This topic has 1 reply, 2 voices, and was last updated 4 years ago by Stephen Widberg.

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May 30, 2020 at 3:16 pm #572361
kyle091214
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Hi Mike,
Thank you for your SBR lactures.
While studying chapter4 Basic Group Structure, I come across the idea of two companies, A and B owning exactly 50% of voting power of company C.
in this case, Can both A and B form a group structure with C?
June 1, 2020 at 2:05 pm #572508
Stephen Widberg
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Likely to be joint venture – if each party has right of veto.
Or an associate if each party can exercise significant influence.
So, either way = equity accounting.
Unlikely to be a subsidiary.
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