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QUESTION 4 On 1 January 2021. Apple Bhd held 45% of the voting rights in Grape Bhd, while Coconut Bhd and Strawberry Bhd equally held
QUESTION 4 On 1 January 2021. Apple Bhd held 45% of the voting rights in Grape Bhd, while Coconut Bhd and Strawberry Bhd equally held the remaining Grape Bhd was involved in selling and marketing of fruits for many years. In the recent shareholders' meeting, it was agreed that Coconut Bhd would have the power to direct all relevant activities related to marketing issues due to their expertise in that field. Apple Bhd believes that it controls Grape Bhd due to its majority voting rights as compared to the other stakeholders in Grape Bhd. However. Coconut Bhd argued that it also has power over Grape Bhd even though it holds lesser voting rights. Required: Discuss whether any company has power over Grape Bhd in accordance with MFRS10. (5 marks) (Total: 30 marks)
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