The Holding of 20% or More of the Voting Power

Multiple Choice

The holding of 20% or more of the voting power in an investee entity by an investor is a presumptive test that the investee is an associate of the investor.The application of this presumptive test means that:

A) Where an investor acquires a 20% equity stakeholding in an investee the investee is an associate of the investor.
B) Where an investor acquires a 20% equity stakeholding in an investee, in the absence of evidence to the contrary, the investee will be treated as an associate of the investor.
C) An investor must have an equity stakeholding in an investee of at least 20% before the investee can be treated as an associate of the investor.
D) None of the above.