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Under Section 2(6), an 'associate company' is one in which the other company has 'significant influence', meaning control of at least:
A75% of voting power
B51% of voting power
C20% of total voting power (or control of business decisions by agreement)
D10% of voting power
Answer & Solution
Correct answer: C. 20% of total voting power (or control of business decisions by agreement)
Significant influence means control of at least 20% of total voting power, or participation in business decisions under an agreement; a joint venture is included.
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