Clarence Ltd., Nordahl Corp., and Tweed Inc. each own one third of the common shares that carry voting rights at a general meeting of shareholders of Parenteau Ltée. Clarence, Nordahl, and Tweed each have the right to appoint two directors to the board of Parenteau. Clarence also owns call options that are exercisable at a fixed price at any time and, if exercised, would give it all the voting rights in Parenteau. The management of Clarence does not intend to exercise the call options, even if Nordahl and Tweed do not vote in the same manner as Clarence.
Discuss whether Parenteau is a subsidiary of any of the other entities.

  • CreatedJune 09, 2015
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