Please help me with this accounting question

How can a business entity have controlling interest of another business entity when it does not own over 50% of the parent company ordinary share capital?

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06-01-2021
Business

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Please help me with this accounting question

How can a business entity have controlling interest of another business entity when it does not own over 50% of the parent company ordinary share capital?

Sagot :

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aragorn44aragorn aragorn44aragorn · Answer 1 · 2021-01-06T08:27:25-05:00

aragorn44aragorn aragorn44aragorn

06-01-2021

Answer:

Shareholders that have a controlling interest often are able to direct the course of at least 50% of the outstanding shares of a given company plus one person or group owns a significant portion of it's voting shares, as not every deal that continues to give them majority voting power over the new entity.

Explanation:

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Please help me with this accounting question How can a business entity have controlling interest of another business entity when it does not own over 50% of the parent company ordinary share capital?

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Please help me with this accounting question

How can a business entity have controlling interest of another business entity when it does not own over 50% of the parent company ordinary share capital?