The correct answer is:
|
|
Subsidiary |
Associate |
|
Zeta Co |
|
X |
|
Iota Co |
X |
|
|
Kappa Co |
X |
|
Iota Co is a subsidiary as Gamma Co has power to cast a majority of votes at meetings of the board of directors. Kappa Co is a subsidiary as Gamma Co owns >50% of the ordinary shares of Kappa, it doesn't make any difference that Kappa Co is based overseas or pays tax in that country. Zeta Co is an associate of Gamma Co due to the 25% share holding in voting shares. The preference shares are non-voting so have no effect.
