Which of the following situations are unlikely to represent control over an investee? A. Owning 51%, but the constitution requires that decisions need the unanimous consent of shareholders B. Having currently exercisable options which would take the shareholding in the investee to 55%

Which of the following situations are unlikely to represent control over an investee? A. Owning 51%, but the constitution requires that decisions need the unanimous consent of shareholders B. Having currently exercisable options which would take the shareholding in the investee to 55%

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter22: S Corporations

Section: Chapter Questions

Problem 2DQ

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Question

Which of the following situations are unlikely to represent control over an investee?

A. Owning 51%, but the constitution requires that decisions need the unanimous consent
of shareholders

B. Having currently exercisable options which would take the shareholding in the
investee to 55%

C. Owning 40% of the shares but having majority of voting rights within the investee

D. Owning 55% and being able to elect 4 of the 7 directors

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