AASB 10 Consolidated Financial Statements B34-B50: Voting rights: a majority confers power unless other arrangements or non-substantive rights defeat it; a minority may confer de facto power through size and dispersion of holdings; potential voting rights count when substantive

What does B34-B50 require?

Where voting rights decide the relevant activities, holding more than half of them normally gives power, unless the relevant activities are directed by someone else under another arrangement or the votes are not substantive (for example during administration or receivership). An investor can have power with fewer than half the votes through an agreement with other vote holders, rights from other contracts, its own votes viewed against the number and dispersion of other holders and past voting patterns (de facto power), potential voting rights, or a combination. Where it remains unclear after considering all the evidence, the investor does not control. Potential voting rights from options, convertible instruments or forwards count only if substantive, having regard to their terms, the investor's purpose in acquiring them, and the conditions attached; economic dependence alone does not give power.