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Discuss whether a parent-subsidiary relationship exists

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Question 1: Discuss whether a parent-subsidiary relationship exists.

P Ltd has recently acquired a 40% interest in L Ltd. P Ltd has extensive experience in the industry and has been able to have four of its directors elected into the Board of L Ltd. L Ltd has a total of six directors. The other stakeholders come from a mixed background with none holding more than 5% of the share capital. Very few of the other shareholders attend annual general meetings and are interested in the management of the business.

Reference no: EM132946503

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