An associate company is a company in which other company holds at least of total share capital ______.

20 %

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15 %

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10 %

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2.5 %

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Solution

The correct option is A 20 %
Under section 2 (6) of the act, “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 and 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.

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