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:
Test yourself: pick an answer
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.
