A. Joint control exists when two or more parties have the right to jointly control an entity, typically requiring unanimous consent for significant decisions. Let's analyze each situation:
A. In this case, although no single shareholder holds a majority stake, the requirement for all major decisions to be approved unanimously by all three parties indicates that Mars Ltd. has joint control with the other two shareholders over Pluto Inc.
B. This scenario does not represent joint control because Mercury Ltd. and Earth Ltd. have formed a voting agreement, which means that the decision-making power effectively rests with Mercury Ltd. and Earth Ltd., not with Mars Ltd.
C. While Mars Ltd. and Jupiter Inc. have a contractual agreement, this does not amount to joint control since production and commercial activities are directed by Mars Ltd. and not by mutual agreement with the other shareholder.
D. In this case, Mars Ltd. has a controlling interest in Sun Ltd., and the contractual agreement allocates specific responsibilities to each party without requiring unanimous consent, indicating that Mars Ltd. has control but not joint control with Moon Ltd. and Stars Ltd.
Therefore, the situation that represents joint control by Mars Ltd. with other companies is situation A, where all significant decisions require the unanimous approval of all three parties.
