PART 4 (CHAPTER 6)

Question 1

Affiliated companies

Answer 1

• companies in relationship of simple/mutual participation
• companies in a control/group relationship

Question 2

Relationship in simple participation

Answer 2

when one company holds quotas or shares of the other in an amount equivalent to or higher than 10% of the share capital of another company

Question 3

Relationship of mutual participation

Answer 3

when each company holds at least 10% of the share capital of the other

Question 4

Control relationship

Answer 4

1. when one company (the controlling company) can exercise a controlling influence over another (the controlled company)
2. a controlling influence when the controlling company holds:
   - majority of capital
   - majority of voting rights
   -right to appoint majority of members of management

Question 5

Group relationship

Answer 5

three types of mechanisms for the creation of a group relationship:
1. Groups incorporated by means of total control
2. Groups incorporated by means of the execution of a horizontal group
agreement
3. Groups incorporated by means of a subordination agreement

Question 6

Groups incorporated by means of total control

Answer 6

• total initial control: when one company incorporates a share company, the incorporating company is the sole partner and holds 100% of the share capital
• total subsequent control

Question 7

Groups incorporated by means of the execution of a horizontal group
agreement

Answer 7

two or more companies agree to submit their management to a single common management

Question 8

Groups incorporated by means of a subordination agreement

Answer 8

company subordinates its management to the corporate bodies of another company