General Administrative Expenses

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So you can think of an affiliated company as "a company that owns more than 20% of the total." 1-2. Stock ratio is not the only criterion The amount of voting rights held is an important point in determining whether a company is an affiliate or not. However, that alone does not determine whether a company is an affiliate. Specifically, a company may be considered an affiliate even if it does not own 20% of the voting stock. In order to do so, certain requirements must be met. Certain requirements are: The Company's officers, etc. Are appointed as representative directors, directors, or equivalent positions of other companies.

Important financing, provision of important technology, important sales, purchases, or other business or business transactions with other companies, etc. For example, Company A owns 16% of the voting rights of Company B. In this case, Company B is not treated as an affiliated company of Company A. However, if an employee of Egypt Phone Number List company A is appointed as a director of company B, it becomes an affiliated company. Please note that whether or not a company is an affiliated company cannot be determined solely by the ratio of voting rights. There are clear criteria for this judgment. If you hold 15% or more but less than 20% of the voting rights, you will be an affiliated company if you meet certain requirements.



If it is less than 15%, it will be an affiliated company if it meets certain requirements of 20% or more when combined with the voting rights of a specific person. Voting rights of specific persons are voting rights held by subsidiaries. For example, Company A holds 12% of the voting rights of Company B and Company C, a subsidiary of Company A, holds 9% of the voting rights. In this case, if an employee of Company A is appointed as a director of Company B, Company B will be judged to be an affiliated company of Company.