b.

)
Significant influence has the power to participate in the operating and financial policy
decisions of an entry and not control over those policies. The relevant factors in the
determination of significant influence are as follows: Board of Directors representation
management of personnel swapping or sharing, material transactions with the investor,
policy making participation and technical information exchanges. These factors are
interrelated and may not be indicative of significant influence because the determination of
significant influence is a judgemental decision.
If an investment or holds at least 20 percent of the voting power of an investor. The
investor is presumed to have significant influence unless reversed through a clear
demonstration to the contrary. If an investor holds a smaller percentage, It is presumed to
have no significant influence unless pieces of evidence are demonstrated. If an investor
holds a larger percentage, still no guarantee of significant influence as there could be a
single shareholder with larger holding. Larger holding could not necessarily preclude the
exercise of significant influence because there should be clear demonstration of the
evidence.