CM-2.5.4
In order for the
(a) Control relationship: One of the counterparties , directly or indirectly, has control over the other(s) based on the following:
(i) Where one entity owns 50% or more of the voting rights of another entity.
(ii) Where one entity is deemed to have control by virtue of voting agreements (e.g. control of a majority of voting rights pursuant to an agreement with other shareholders).
(iii) Where one entity exercises significant influence on the appointment or dismissal of an entity’s board and/or senior management, such as the right to appoint or remove a majority of such persons, or the fact that a majority of such persons have been appointed solely as a result of the exercise of an individual entity’s voting rights.
(iv) Where one entity has significant influence on the board or senior management, e.g. an entity has the power, pursuant to a contract or otherwise, to exercise a controlling influence over the management or policies of another entity (e.g. through consent rights over key decisions).
; or(b) Economic interdependence: If one of the counterparties were to experience financial problems, in particular funding or repayment difficulties, the other(s), as a result, would also be likely to encounter funding or repayment difficulties.
Added: June 2022