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Does Substantial Interest and Significant Influence mean the same?

Or is Substantial interest only used for 'Control' definition purpose? See attached please to refer what i am talking about

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20201105_090956.jpg


Kumarjit Dey

Kumarjit Dey

CA Inter

4K+

05-Nov-20 09:12

15

Answers (4)

Control for AS 21 comes from ownership (>50%) or controlling composition BOD. For AS-18 control also includes substantial interest . something 50% or less. Significant influence is the ability to direct the enterprise. Significant influence can come from substantial interest as well.


Suraj Lakhotia

Suraj Lakhotia

Admin

05-Nov-20 10:32

And does Substantial Interest and power to direct financial/operating policies of the entity go hand-in-hand?

Some times substantial interest may not give rise to influence. It depends on Shareholders Agreements.


Suraj Lakhotia

Suraj Lakhotia

Admin

05-Nov-20 10:56

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