Q4. Identify whether the other enterprises (B, C, D) are subsidiaries of A in the following...

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Q4. Identify whether the other enterprises (B, C, D) are subsidiaries of A in the following circumstances: A owns 32,000 €1 ordinary shares of B; B's issued ordinary share capital is €40,000. A owns 20,000 €1 ordinary shares of B; B's issued ordinary share capital is €40,000. A owns 45% of the voting rights of B and also has an agreement with shareholder C, who owns 15% of B, that A can vote these shares. ii) iii) iv) A owns 35% of voting rights of B, and also has power to appoint/remove 3 out of the 7 directors of B. v) A owns 30% of voting rights of B and 80% of voting rights of C, which owns 25% of voting rights of B. vi) A owns 80% of C's ordinary shares. C owns 30% of B's ordinary shares. A also owns 60% of D's ordinary shares. D owns 25% of the ordinary shares in B. vii) A owns 60% of the ordinary shares of B, which owns 60% of the ordinary shares of C, which owns 60% of the voting rights in D partnership. Q4. Identify whether the other enterprises (B, C, D) are subsidiaries of A in the following circumstances: A owns 32,000 €1 ordinary shares of B; B's issued ordinary share capital is €40,000. A owns 20,000 €1 ordinary shares of B; B's issued ordinary share capital is €40,000. A owns 45% of the voting rights of B and also has an agreement with shareholder C, who owns 15% of B, that A can vote these shares. ii) iii) iv) A owns 35% of voting rights of B, and also has power to appoint/remove 3 out of the 7 directors of B. v) A owns 30% of voting rights of B and 80% of voting rights of C, which owns 25% of voting rights of B. vi) A owns 80% of C's ordinary shares. C owns 30% of B's ordinary shares. A also owns 60% of D's ordinary shares. D owns 25% of the ordinary shares in B. vii) A owns 60% of the ordinary shares of B, which owns 60% of the ordinary shares of C, which owns 60% of the voting rights in D partnership.

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In order to determine whether the other enterprises B C D are subsidiaries of A we need to consider the criteria for what constitutes a subsidiary relationship Generally a subsidiary is a company that ... View the full answer