Question

Investor A holds 42% of voting rights in TargetCo; the

Q: Answer-Investor A holds 42% of voting rights in TargetCo; the remaining shares are widely dispersed with no...

Control under Ind AS 110 focuses on power over relevant activities, exposure to variable returns, and ability to affect those returns. With dispersed others, consistent decision-making power, and substantive rightsfunding dependence, A likely has de-facto control and must consolidate.

remaining shares are widely dispersed with no other holder above 3%. Investor A also has substantive rights to appoint key management and provides essential funding via an exclusive facility. Historic meetings show passive minority participation and A’s proposals always pass. Should Investor A consolidate TargetCo and on what basis?

A No—control requires >50% voting rights.

B Yes—de-facto control via dominant voting interest and dispersion of others.

C No—funding arrangements are protective rights only.

D Yes—power via potential voting rights only.

E No—needs a board majority plus >50% votes.

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Investor A holds 42% of voting rights in TargetCo; the

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