An investor can own more than 20% of the shares of an investee and not exercise significant influence over the investee.

Question

Quizplus · Accepted Answer

Owning more than 20% of shares does not necessarily equate to significant influence. Even if an investor has a substantial ownership stake, they may not have control over decision-making or strategic direction. Significant influence is determined by the level of involvement in the investee's activities and management decisions.

An Investor Can Own More Than 20% of the Shares