Difference between significant influence and substantial int

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Querist : Anonymous

Querist : Anonymous (Querist)

27 October 2010 HI friends,

What is the difference between significant influence and substantial interest?

taxindiaconnect

taxindiaconnect (Expert)

27 October 2010 Substantial interest means the one entity / person has financial interest > then of a specific predefined % in the capital of the other entity / person where as the significant influence means that a person / entity has influence on the other by way of board seat or sales contract loan contract etc even without any financial investment.

CA Punit

CA Punit (Expert)

28 October 2010 a person is said to hv significant influence over othr when he has direct or indirect control over the managerial/decision making power or conducting affairs of the business of the other person
it may be by holding substantial equity, funding, board membership or by any othr way of participation in management.

& substantial interest as explained above means
financial interest beyond a specified % making it SUBSTANTIAL

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