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    Question

    As per the provisions of SEBI (SAST), 2011 during acquisition of a company “CONTROL” includes rights to

                          I.        Appoint majority of directors

                        II.        Control the management

                       III.        Control policy decisions

    A II&III Correct Answer Incorrect Answer
    B I&II Correct Answer Incorrect Answer
    C II only Correct Answer Incorrect Answer
    D III only Correct Answer Incorrect Answer
    E I,II&III Correct Answer Incorrect Answer

    Solution

    The SAST Regulations 2011 states that control includes the right to appoint majority of directors or to control the management or policy decisions, which can be exercised by a person or persons acting individually or in concert, directly or indirectly, including by virtue of their shareholding or management rights or shareholders agreements or voting agreements or in any other manner.

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