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Under Ind AS 110, REMOVAL RIGHTS held by other investors over the decision maker are MOST conclusive of agent status when:
AA SINGLE party can remove the decision maker WITHOUT CAUSE — this alone is sufficient to conclude the decision maker is an agent
BThe board of directors (appointed by the decision maker) can remove with cause
CA simple majority of investors can remove the decision maker for cause only
DA two-thirds super-majority must agree to removal
Answer & Solution
Correct answer: A. A SINGLE party can remove the decision maker WITHOUT CAUSE — this alone is sufficient to conclude the decision maker is an agent
Para B65 — a single party holding substantive removal rights exercisable WITHOUT CAUSE is sufficient in isolation to conclude that the decision maker is an agent. If more parties must act together (especially many widely-dispersed investors), or removal is only for cause (protective right), or if the board appointing the decision maker is itself appointed by the decision maker — these are NOT individually conclusive. Removal rights weighting goes down as more parties must coordinate.
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