An associate is an entity in which another entity has an interest and over whose operating and financial policies the other entity has significant influence. A company is deemed to exercise significant influence over another company if it holds 20 % or more of the voting rights of the shareholders or associates of that company. Consequently, two conditions must be met cumulatively for the existence of an affiliated company, namely the holding of an interest in the other company and the exercise of significant influence over its business and financial policy.
