wholly owned subsidiary

(redirected from Wholly Owned)

Wholly owned subsidiary

A subsidiary whose parent company owns virtually 100% of its common stock.

Wholly Owned Subsidiary

A company that, while theoretically publicly-traded, has all of its common stock owned by a single company. Some wholly owned subsidiaries belong to the same industry as the parent company, while others do not, and are part of a diversification effort on the part of the parent company. A wholly owned subsidiary's board of directors is directly appointed by the parent company, and is ultimately responsible to the shareholders of the parent company. Some wholly owned subsidiaries were once part of the parent company but were spun off, while others were smaller companies bought outright by their parent companies. See also: Holding company.

wholly owned subsidiary

A company that is totally owned by another company. For example, American Airlines is a wholly owned subsidiary of AMR Corp. A wholly owned subsidiary may have publicly traded preferred stock and debt, but all of its common stock is owned by a parent company and is unavailable for purchase.
References in periodicals archive ?
Into this void enters Grigoraci, TC Memo 2002-202, in which the Service loses a dispute to disregard a wholly owned S corporation.
If a taxpayer rents property to his or her wholly owned corporation, IRC section 469 generally categorizes this as a passive activity.
This technology was originally developed by Delta Biotechnology, a wholly owned subsidiary of Aventis Behring.
Most domestic corporations that are wholly owned S subsidiaries are eligible, except for financial institutions using the reserve method of accounting for bad debts, insurance companies, current or former domestic international sales corporations, corporations subject to the possessions credit provisions and foreign corporations.
In Clark, 489 US 726 (1989), a shareholder sold his wholly owned corporation to a publicly held corporation.
However, in Letter Ruling (TAM) 9403003, the IRS National Office ruled that advances made by a shareholder to his wholly owned S corporation did not create basis.