Analyse the following situations: 

(a) A owns 60 per cent of the voting rights of B, C owns 19 per cent of the voting rights of B, and the remainder are dispersed among the public. C also is the sole supplier of raw materials to B and has a contract to supply certain expertise regarding the maintenance of B’s equipment. 

(b) Company X owns 22 per cent of Company Y and is entitled to appoint two directors to the board, which consists of eight members. The remaining 78 per cent of the voting rights are held by two other companies, each of which is entitled to appoint three directors. The board makes decisions on the basis of a simple majority.

Because board meetings are often held at very short notice, Company X does not always have representation on the board. The suggestions of the representative of Company X are ignored, and the decisions of the board seem to take little notice of any representations made by the director from Company X. 

(a) What is the relationship between C and B? 

(b) What is the relationship between Company X and Company Y?