Question 1

Companies Act 2016 states that a corporation shall be deemed to be a subsidiary of another corporation if - (a) The other corporation - (i) Controls the composition of the board of directors of the corporation (ii) Controls more than half of the voting power of the corporation; or (iii) Holds more than half of the issued share capital of the corporation, excluding any part of the share capital which consists of preference shares; or (b) The corporation is a subsidiary of any corporation which is that other corporations subsidiary.

Required:- Explain how to determine whether a corporation controls the composition of the board of directors of another corporation? Support your answer with relevant section(s).