CERTYNEX IFRS ACADEMY

Alpha SA and Bêta SA each hold 50% of the capital of Gamma SA. Under the agreement, decisions about Gamma's relevant activities are taken by simple majority of the board seats, and Alpha holds 5 of the 9 seats (case data). What is concluded about joint control of Gamma?

There is joint control, because each of the two parties holds 50% of Gamma's capital and an equal holding reflects a sharing of control.

There is joint control, because Bêta sits on the board and takes part in the deliberations on the relevant activities, which gives it a voice in each decision.

There is joint control, because the contractual agreement binds both parties for the operating life of Gamma, which establishes shared control.

There is no joint control: decisions do not require the unanimous consent of both parties, as Alpha can decide without Bêta.