JUNE 2015

Because Germane controls only 40% of the votes In ii) although we have only 40% of the votes TODAY, Germane will get 32,000,000 out of the 40,000,000 new shares if all the loan note holders choose to convert into equity rather tha elect to receive cash That would then give Germane 30,400,000 out of a total of 41,000,000 equity shares and therefore control iii) the right to receive variable returns and the ability to affect those returns indicates effective control in the hands of Germane Option i) does not make Germane the parent company whereas the other two options do Ok?

If you don't control >50% of the votes, you don't control the business at a general meeting of shareholders, so you don't have a subsidiary! Ok?

You're welcome