Frontera Energy Corp T.FEC

The Advantages of owning over 75% of another Company

[kcac1]

"Frontera Energy Corporation, as the majority shareholder of CGX Energy Inc., acquired 45,083,314 CGX common shares in connection with a rights offering. Prior to this acquisition, Frontera owned approximately 73.85% of the issued and outstanding Common Shares on a non-diluted basis. After the issuance of the Common Shares and Warrants, Frontera now holds approximately 76.98% of the issued and outstanding Common Shares on a non-diluted basis and 78.79% on a partially-diluted basis

When a company owns more than 75% of another company, it gains significant control over the subsidiary. Here are the advantages:

1. Absolute Decision-Making Power: Owning more than 75% allows the parent company to make crucial decisions without needing approval from other shareholders. It can influence strategic choices, management appointments, and operational matters12.

2. Full Control: With over 75% ownership, the parent company can shape the subsidiary’s direction, policies, and business operations. It effectively controls the board of directors and management team3.

3. Consolidation: Financially, owning more than 75% enables consolidation. The parent company combines the subsidiary’s financials with its own, providing a comprehensive view of the entire group’s performance1.

4. Risk Management: Higher ownership allows better risk management. The parent can mitigate losses, protect assets, and ensure alignment with its overall business strategy1.

Remember that owning between 50% and 75% still provides influence, but surpassing the 75% threshold grants far more decisive power and control4. "

[Frank007]

These guys are not dumb ..that is for sure ...manipulating crooks yes ..but not dumb ....pretty sure they have something up their sleeves ....