23 July 2015
"associate company”, in relation to another company, means a company in which that other company has a significant influence, but which is not a subsidiary company of the company having such influence and includes a joint venture company. Explanation.—For the purposes of this clause, “significant influence” means control of at least twenty per cent. of total share capital, or of business decisions under an agreement.
Example: A Ltd owns 25% shares of B Ltd, then B Ltd becomes Associate company of A Ltd.
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