Which of the following companies are subsidiaries of Gamma Co? Zeta Co: Gamma Co owns 51% of the non-voting preference shares of Zeta Co Iota Co: Gamma Co has 3 representatives on the board of directors of Iota Co. Each director can cast 10 votes each out of the total of 40 votes at board meetings. Kappa Co: Gamma Co owns 75% of the ordinary share capital of Kappa Co, however Kappa Cois located overseas and is subject to tax in that country.
A、Zeta Co, Iota Co and Kappa Co
B、Zeta Co and Kappa Co
C、Iota Co and Kappa Co
D、Zeta Co and Iota Co
A、Zeta Co, Iota Co and Kappa Co
B、Zeta Co and Kappa Co
C、Iota Co and Kappa Co
D、Zeta Co and Iota Co
【参考答案及解析】
Iota is a subsidiary as Gamma has power to cast a majority of votes at meetings of the board of directors. Kappa is a subsidiary as Gamma owns >50% of the ordinary shares of Kappa, it doesn’t make any difference that Kappa is based overseas or pays tax in that country. Zeta is not a subsidiary of Gamma because Gamma’s investment in the non-voting preference shares will not give it the ability to control Zeta.
Iota is a subsidiary as Gamma has power to cast a majority of votes at meetings of the board of directors. Kappa is a subsidiary as Gamma owns >50% of the ordinary shares of Kappa, it doesn’t make any difference that Kappa is based overseas or pays tax in that country. Zeta is not a subsidiary of Gamma because Gamma’s investment in the non-voting preference shares will not give it the ability to control Zeta.