Answer to Question #167910 in Management for Wilfred Mwinso

Question

Identify whether those shareholders have control or significant influence on Aluworks and whether Aluworks was right in presenting separate financial statements. Do you see any issues bordering on consolidation?

Answer 1

Aluworks Company

               The major shareholders in the company have the highest proportion of shareholdings hence they have a controlling interest too. Being that the shareholders in question have co trolling interests, there is a sense in which they can determine the course of the company by making various crucial decisions in the operation of the company. Generally, controlling interest that is more than 50% gives the group of shareholders unique influence over many crucial things that are happening in the company. Besides the above-named issues, the controlling interest that is owned by the three shareholders also grants them the right to increase their shares at Aluworks in case the company decides to the merger with or acquire another company.