Dominantentity, is another concept that we will discuss in detail. Find out what a dominant entity is and what qualifies it to be dominant.
What does dominant entity mean? Definition of the term
Definition of a dominant entity according to the Commercial Companies Code A dominant entity is an entity that directly or indirectly holds at least 25% of the shares entitled to vote at a general meeting in a company that is a dominant entity, or an individual who holds at least the same percentage of shares. The provisions of the Commercial Companies Code do not define the concept of a dominant entity, but the Supreme Court, in its judgment of June 29, 2001 (I CKN 1103/99, OSNC 2002, No. 7-8, item 96), indicated that it is an entity that directly or indirectly has a majority of votes at the general meeting of a company and is entitled to exercise control over that company. A parent company may also be an individual who directly or indirectly holds a majority of votes at the general meeting of the company. A parent entity can also be a company that directly or indirectly holds a majority of the votes at the general meeting of the company that is the parent.
What qualifies entities to be dominant?
Full dominance is a position in which one entity controls the entire market. It can be obtained in two ways. The first is through direct control of a majority of assets. The second is through control of a majority of shares. A dominant entity can also control the market through ownership of one of the three largest companies in the market. A dominant entity is able to maintain its position in the market even if asset prices fall. This is because dominant units can control prices through their substantial ownership. Dominant units are also able to maintain their position in the market, even if competition is strong. This is because dominant units have more resources and are able to survive longer than their smaller competitors.
Also check out what a downstream dominant unit is.
