- This topic has 1 reply, 2 voices, and was last updated 1 year ago by .
- You must be logged in to reply to this topic.
Congratulations to Jamil from Pakistan and Jeeva from Malaysia - Global Prize winners!
see all ACCA December 2022 Genius Hunt Competition winners >>
Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>
A controlling ownership(more than 50% voting rights), however, does not necessarily mean that the entity has the power to govern the combined entity’s financial and operating policies so as to obtain benefits from its activities.
sir I came across this sentence in my Kaplan exam kit. And i find this slightly at odds with my understanding of control. If an entity has more than 50% voting rights than should not it straightway means that it has CONTROL over all financial and operating policy decisions of the entity?
Not necessarily. It may be that there is a separate legal agreement which gives control to another party.