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CAF-4 · Chapter 24 · Question 3 of 5

Zakir is a director in Company A. He has been newly appointed as a director in Company B. Because of Zakir's common directorship, Company A and Company B are now legally defined as:

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Reveal answer & explanation

Correct answer: B) Associated Companies

Explanation

Entities become associated companies or associated undertakings if they have common directorship (i.e., a person is a director in both), meaning they are under common management or control.

All 5 questions in Chapter 24Investments and disclosure of interest MCQs with answers

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