15-6 Ability to exercise significant influence over operating and financial policies of an investee may be indicated in several ways, including the following:
- Representation on the board of directors
- Participation in policy-making processes
- Material intra-entity transactions
- Interchange of managerial personnel
- Technological dependency
- Extent of ownership by an investor in relation to the concentration of other shareholdings (but substantial or majority ownership of the voting stock of an investee by another investor does not necessarily preclude the ability to exercise significant influence by the investor).
Table 3-2 Indicators of Significant Influence