Answer to Question #172767 in Economics for Paula

Question

Case 1

A formed an arrangement with two other parties E and D. A has 50% of the voting rights in the 

arrangement and E and D each have 25%. The contractual arrangement between A, E and D

specifies that at least 75% of the voting rights are required to make decisions about the relevant 

activities of the arrangement 

Required: In the format of a single Memorandum to A:

2.1

Use information in Case 1 to explain to A the existence or non existence of a 

joint arrangement.

Answer 1

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