What percentage of shares,as a general rule,are held by an investor for it to be presumed that the investor has significant influence over the company,unless there is evidence to the contrary?
A) 10% or more
B) 20% or more
C) 40% or more
D) 50% or more.

Question

Quizplus · Accepted Answer

Generally, an investor with 20% or more of a company's shares is presumed to have significant influence over the company unless there is evidence to the contrary. This is because a 20% stake gives the investor the ability to block certain actions such as mergers, acquisitions, and other major decisions that require a supermajority vote. However, it should be noted that this is not a hard-and-fast rule, and other factors such as the size and structure of the company can also influence whether an investor is considered to have significant influence.

What Percentage of Shares,as a General Rule,are Held by an Investor