subsidiary company


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Related to subsidiary company: consolidated balance sheet

Subsidiary

A company that is publicly-traded but has more than half its stock owned by another company, known as the parent company. As long as the parent company owns more than half the stock, it maintains control of the subsidiary, though its other stock is still traded. Some 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. See also: Wholly owned subsidiary.

subsidiary company

a JOINT STOCK COMPANY that is owned by another company (the HOLDING COMPANY). Specifically a subsidiary company is one in which the holding company owns between 50% and 100% of the voting shares. The accounting results of subsidiary companies are consolidated (see CONSOLIDATED ACCOUNTS) in the annual accounts of the holding company. A subsidiary company is regarded as different from an ASSOCIATED COMPANY (where the holding company owns between 20% and 50% of its shares) which is less subject to the influence of the holding company and continues to produce its own annual accounts. A subsidiary company may continue to trade under its own name, but it is subject to control by the parent company.

subsidiary company

a company that is owned by another company (see FIRM). A subsidiary company may continue to trade under its own name, but it is subjected to complete or partial centralized control by the ‘parent company’. See also HOLDING COMPANY, CONSOLIDATED ACCOUNTS.
References in periodicals archive ?
According to Singapore companies act, 100% foreign share holding is allowed for a Singapore subsidiary company.
The land for the project would be leased by MSIL to the subsidiary company to establish the production and related facilities.
Once the new subsidiary company is established, Red Sea will go on to construct a new manufacturing facility in Libya, which will add some 300,000 square meters of capacity to the existing three facilities which currently are located in Saudi Arabia, United Arab Emirates and Ghana, and will increase total production capacity by 37.