Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

House Pty Ltd is the registered shareholder of 36% of the shares in Cuddy Pty Ltd. The other 64% of the shares are spread amongst

House Pty Ltd is the registered shareholder of 36% of the shares in Cuddy Pty Ltd. The other 64% of the shares are spread amongst 4 shareholders: Camryn, Wilson, Chase and Eric.Wilson, Chase and Eric each own 15% of the shares and Camryn owns 19% of the shares. House Pty Ltd is the proxy holder for Camryn's shares in Cuddy Pty Ltd. House Pty Ltd has agreed in writing to vote according to Camryn's wishes in relation to the proxy.The constitution ofCuddy Pty Ltd provides that it must have 3 directors only, and that House Pty Ltd has the power to appoint 2 and remove 1 of the directors.Which statement best describes the relationship between these companies?

a.House Pty Ltd is the holding company of Cuddy Pty LtdbecauseHousecan control the casting of more than 50% of the votes inCuddyatitsgeneral meeting

b.House Pty Ltd is the holding company of Cuddy Pty LtdbecauseHousecontrols the composition of Cuddy's board

c.Cuddy Pty Ltd is the holding company of House Pty Ltdbecause Cuddy holdsmore thanhalf of the issued share capital in House

d.Cuddy Pty Ltd is the holding company of House Pty LtdbecauseCuddycontrolsthe casting of more than 50% of the votes in House atitsgeneral meeting

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction To Management Accounting A User Perspective

Authors: Michael L Werner, Kumen H Jones

2nd Edition

0130327506, 9780130327505

More Books

Students also viewed these Accounting questions

Question

3. What is my goal?

Answered: 1 week ago

Question

2. I try to be as logical as possible

Answered: 1 week ago