On 1 June 2019 Flawless Ltd sold land to Connell Ltd at fair value. The consideration paid to Flawless Ltd comprised cash and options. The options can be converted into ordinary shares in Connell Ltd at any time over the next seven years. If the options were exercised, Flawless Ltd would hold 65% of the voting rights in Connell Ltd. Flawless Ltd does not intend to exercise the options as they are not interested in obtaining an ownership interest in Connell Ltd. Also, Flawless Ltd is not interested in contributing to the decision making of Connell Ltd. Furthermore, even though Flawless Ltd can obtain the financial resources to exercise the options they would prefer to invest their money elsewhere. Connell Ltd is listed on the Australian Stock Exchange. As at 30 June 2019 Flawless Ltd owns no shares in Connell Ltd.

Required:

Discuss, clearly stating your reasons whether Flawless Ltd has control of Connell Ltd as at 30 June 2019.