PCD-A.2.5

Control is presumed to exist when the parent bank owns, directly or indirectly through subsidiaries, more than half of the voting power of an entity unless, in exceptional circumstances, the bank can clearly demonstrate that such ownership does not constitute control. Control also exists when the parent owns half or less of the voting power of an entity when there is power:

(a) Over more than half of the voting rights by virtue of an agreement (whether revocable or not) with other investors;
(b) To govern the financial and operating policies of the entity under a statute or an agreement;
(c) To appoint or remove the majority of the members of the board of directors or equivalent governing body and control of the entity is by that board or body; or
(d) To cast the majority of votes at meetings of the board of directors or equivalent governing body and control of the entity is by that board or body.
October 2010