Associate Company - Companies Law Ready Reckoner - Companies Law

As per section 2(6) of the Companies Act, 2013, unless the context otherwise requires,- Associate Company , in relation to another company, means- a company in which that other company has a significant influence, but which is not a subsidiary company of the company having such influence and includes a joint venture company. Explanation .-For the purpose of this clause,- (a) the expression Significant Influence means control of at least twenty per cent. of total voting power, or control of or participation in business decisions under an agreement; (b) the expression Joint Venture means a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement;