Question
ABC Ltd owns 40% of the shares of DEF Ltd; no other party owns more than 3% of the shares. The annual general meeting of
ABC Ltd owns 40% of the shares of DEF Ltd; no other party owns more than 3% of the shares. The annual general meeting of DEF Ltd is to be held in one month's time. Historically, only the holders of around 75% of the shares were present and voted in each of the previous years' annual meetings.
Required
Discuss the potential for DEF Ltd to be classified as a subsidiary of ABC Ltd.
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Managerial Accounting
Authors: John J Wild, Ken W. Shaw, Barbara Chiappetta
7th edition
1260482936, 978-1260482935
