When considering solely the exercise period, the investor”s option would be a substantive right that gives the investor power (since it would give the holder a majority of shares). This is because the investor does have the current ability to direct the investee”s relevant activities when decisions need to be made, i.e. at the next scheduled shareholder meeting or next special shareholder meeting.
However, when concluding whether an investor has power over the investee in real fact patterns, all relevant facts and circumstances would be considered, to evaluate whether the option is substantive, not solely the exercise period.