The correct answer is that the following are subsidiaries of Oak pic:
Vine (as Oak owns more than 50% of the equity shares)
Beech (due to the right to appoint a majority of the directors).
Chestnut, Rock and Star are not subsidiaries of Oak because Oak does not have control over them.
However, because Oak owns 20% or more of the equity share capital of those companies, significant influence is presumed and Chestnut, Rock and Star are therefore associates of Oak. |
