Question: Essay Question 1: Effective Control A shareholder who does not own more than 50% of the shares, may still have control over another entity. In

Essay Question 1: Effective Control

A shareholder who does not own more than 50% of the shares, may still have control over another entity. In respect of this, answer the following questions in the form of an essay:

1.Differentiate between passive and effective control.

2.Explain the situations where a minority shareholder may have effective control.

3.Explain the drawbacks of effective control.

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