Task ? 3

Specification:

Undertaking A entirely owns subsidiary undertaking B (100% of the authorised capital). One of directors of subsidiary undertaking B is a major shareholder of a third undertaking D, which otherwise will be considered as independent. Undertaking D supplies commodities to subsidiary undertaking B at a price determined by independent parties. Director is a member of the key management personnel of undertaking B.

Question:

Should the management of undertaking A disclose undertaking D as the related party, since the director of subsidiary B is the major shareholder of undertaking D?