Two unrelated entities Armando Entity (AE) and Belanto Entity (BE) each own 30% of the voting rights of Sahara Entity (SE). The remaining voting rights are held by thousands of shareholders, none individually holding more than 1% of the voting rights. The contractual arrangement between AE and BE specifies that their unanimous consent (the casting of their combined 55% voting rights) is required to make decisions about the relevant activities of SE. There are no other agreements among other shareholders to make collective decisions. What type of relationship does AE and BE have with SE?

Question

Quizplus · Accepted Answer

The Answer of Two unrelated entities Armando Entity (AE) and Belanto Entity (BE) each own 30% of the voting rights of Sahara Entity (SE). The remaining voting rights are held by thousands of shareholders, none individually holding more than 1% of the voting rights. The contractual arrangement between AE and BE specifies that their unanimous consent (the casting of their combined 55% voting rights) is required to make decisions about the relevant activities of SE. There are no other agreements among other shareholders to make collective decisions. What type of relationship does AE and BE have with SE?

Two Unrelated Entities Armando Entity (AE) and Belanto Entity (BE)