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Question

Which of the following statements is/are incorrect?

1)  A Co owns 25% of the ordinary share capital of B

Co, which means that B Co is an associate of A Co.

2)  C Co can appoint 4 out of 6 directors to the board of D Co, which means that C Co has control over D Co.

3)   E Co has the power to govern the financial and operating policies of F Co, which means that F Co is an associate of E Co.

4)   G Co owns 19% of the share capital of H Co, but by agreement with the majority shareholder, has control over the financial and operating policies of H Co, so H Co is an associate of G Co.

A. 1 and 2 only

B. 1, 2 and 3 only

C. 3 and 4 only

D 4 only  

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