Polaris Ltd is a public company which is listed on the Australian Securities Exchange and has numerous small shareholders. Polaris Ltd owns 35% of the issued ordinary shares of Beta Ltd. The remaining shares of Beta Ltd are widely distributed among numerous small shareholders, none of which own more than 4% of Beta Ltd. Beta Ltd's constitution provides that at general meetings of the company, ordinary shareholders are entitled to vote on resolutions and elect directors, on the basis of one vote per ordinary share. 
At general meetings of Beta Ltd, resolutions proposed by Polaris Ltd are invariable passed, and candidates for directorships nominated by Polaris Ltd are invariable elected, because many small shareholders in Beta Ltd do not exercise their right to attend general meetings and vote. 
REQUIRED 
Advise Polaris Ltd whether it is required to produce consolidated financial statements (CFS). Consider the levels of control and the members' rights in your answer. 
INFORMATION 
Your research assignment must be submitted at the beginning of your seminar in week 10. Penalties will apply for late submission. 
The following matters should be given particular attention: 
1. Assignments must not exceed the word counts indicated. Double space your pages, use a 12- pt Times New Roman font, use 2 cm margins on all four sides of your page. 
2. Your assignment must include an abstract/synopsis, introduction, essay body that clearly addresses the problem areas, a conclusion and a properly referenced appendix. (refer to the research essay marking rubric for further guidance) 
3. Evidence of extensive research beyond the prescribed text is required. Ensure these are referenced appropriately. Refer to the statement regarding plagiarism. 
4. NO extensions will be granted unless supported by appropriate documentation prior to the due date. 
5. This assignment must be handed in for successful completion of the course and will count 20 marks towards the final mark. 
6. The word count for the assignment is 2000 words. Please refer to the Research Assignment Marking Scheme for the specific allocation of words for each specific section of your assignment (refer point 2 above). 
7. Scores (fractional marks) have also been allocated to each specific section of your assignment. 
8. The research assignment is to be conducted in groups of two. Students do not have the option to extend or reduce the size of the group. If the class has an odd number of students then one student must undertake the assignment on their own.