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PQR Ltd. and XYZ Ltd. each hold 50% voting rights. The contract requires at least 51% of voting rights to approve decisions about relevant activities. Is this a joint arrangement?
ANo, because no party has more than 50%
BNo, because the contract doesn't explicitly call it a joint arrangement
CYes only if the parties are unrelated
DYes, this is implicit joint control — neither party can decide alone; both must agree
Answer & Solution
Correct answer: D. Yes, this is implicit joint control — neither party can decide alone; both must agree
Where the supermajority threshold means decisions can only be passed if both parties agree, joint control is implicit. Ind AS 111 illustration 2 captures this exact scenario.
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