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Differentiate between passive and effective control

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Reference no: EM132602237

Question - A Shareholder who does not own more than 50% of the shares, may still have control over another entity. In respect of this, answer the following questions in the form of an essay:

1. Differentiate between passive and effective control.

2. Explain the situations where a minority shareholder may have effective control.

Explain the drawbacks of effective control.

Reference no: EM132602237

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