Practice question
A company owns only 20% of another but an enforceable governance arrangement lets it cast a majority of votes at board meetings. It argues control is impossible because it cannot appoint directors alone. Which Section 25 analysis is correct?
- Appointment power is the only possible control route
- Minority investment can never confer control
- Only company size matters
- Power to cast majority board votes is a separate statutory control basis
- All contracts are irrelevant to control
Legal references
- RA 10667, Philippine Competition Act, Sections 4, 14-15 and 24-27: https://lawphil.net/statutes/repacts/ra2015/ra_10667_2015.html
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