- This topic has 1 reply, 2 voices, and was last updated 1 year ago by
.
- Posts
Mr P has a 70% shareholding in Entity A.
Mr P has a 30% shareholding in Entity B.Mr P controls Entity A and is able to exert significant influence over Entity B.
Mr P has a 25% shareholding in Entity A.
Mr P has a 30% shareholding in Entity B.Mr P is able to exert significant influence over Entity A and Entity B.
Required:
For each situation above explain whether or not Entity A and Entity B are related parties.Kindly provide the answer of above query
As always at this level, there may be no right and wrong and it’s fine to say that he may be a RP.
First scenario – Mr P is RP of A and of B, AND A may be RP of B
Second scenario – Mr P is RP of A and of B. I am not convinced that A is a RP of B
Fortunately exam questions focus on the ethics of non-disclosure rather than the minutiae of disclosure!
- You must be logged in to reply to this topic.