Practice question
A owns 40% of B's voting power. A binding agreement gives A authority to appoint and remove a majority of B's board. A says control is impossible below 51% ownership. Apply Section 25.
- A is correct because only majority ownership can establish control.
- A is correct unless B is already dominant.
- A is correct because board appointment power is irrelevant.
- A is incorrect because the specified board power can establish control despite ownership of one-half or less.
- A is incorrect because every minority shareholder controls B.
Legal references
- RA 10667, Sections 4(f)–(g), 25 and 27; https://lawphil.net/statutes/repacts/ra2015/ra_10667_2015.html
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