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Joint Control -Dec 2018 Q3(c)

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Joint Control -Dec 2018 Q3(c)

  • This topic has 1 reply, 2 voices, and was last updated 5 years ago by Stephen Widberg.
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  • April 18, 2020 at 2:00 pm #568675
    toushiga
    Participant
    • Topics: 424
    • Replies: 172
    • ☆☆☆☆

    Sir, for the last paragraph of the examiner answer under Q3 part (c)

    Why the Joint control situation existed between the entities when the approval of decisions required agreement by 72% if the participating interest? is it not must be required to have unanimous consent about the decision made?

    Thank you.

    April 18, 2020 at 4:57 pm #568701
    Stephen Widberg
    Keymaster
    • Topics: 16
    • Replies: 3411
    • ☆☆☆☆☆

    I don’t think he means joint control as in the definition of a joint arrangement – I think he’s using the word in a loose sense – ‘they jointly control the business’

    What he’s trying to test is whether you think the Fill now has ‘control’ by owning 52% of asset. Very nasty question.

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