Associate comapny
This query is : Resolved
23 July 2015
Dear expert,who is a associate company.kindly provide us the example for the same.Thank you
23 July 2015
"associate company”, in relation to another company, means a company in
which that other company has a significant influence, but which is not a subsidiary
company of the company having such influence and includes a joint venture company.
Explanation.—For the purposes of this clause, “significant influence” means
control of at least twenty per cent. of total share capital, or of business decisions under an agreement.
Example:
A Ltd owns 25% shares of B Ltd, then B Ltd becomes Associate company of A Ltd.
which that other company has a significant influence, but which is not a subsidiary
company of the company having such influence and includes a joint venture company.
Explanation.—For the purposes of this clause, “significant influence” means
control of at least twenty per cent. of total share capital, or of business decisions under an agreement.
Example:
A Ltd owns 25% shares of B Ltd, then B Ltd becomes Associate company of A Ltd.
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