q2b. Explain possible strategies Colvin Co could adopt to avoid a block on dividend remittances if Canvia’s opposition party was to win the election
Sir May i ask what it actually asking from this question? From my understanding, Colvin is parents while Canvia is a sub. Why Colvin want to block on the dividend remittances? Suppose should be subsidiary paid to parents
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5y ago#1Colvin does not want to block remittances - they want to received dividends from their subsidiary.
However, given that the subsidiary is in Canvia, the government in Canvia might choose to stop companies in their country from remitting dividends to another country. They are perfectly entitled to do that and it does happen in real life also.
Sir can i understand it as what action can be taken by Colvin which allow them to receive dividend in another form when there is control implemented in Canvia government?
5y ago#3The question is asking how Colvin can still try to get money from the subsidiary if the government stops the subsidiary from paying dividends abroad.
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