What is Subsidiary

What is Subsidiary by iamsheraz

Subsidiary

Subsidiary is an entity which is controlled by another entity. The controlled entity is called subsidiary and the controlling entity is called parent or holding entity.The subsidiary and parent relationship is established by virtue of control. Normally more than 50% shareholding is considered to be a main factor of controlling the other organization, however, there are number of other factor which can also establish this relationship.

1.      Control more than 50% shareholding by virtue of agreement with other investors.

2.      Financial and operational policies governance

3.      Power of  appointment and removal of majority of Director

4.      Power to cast majority of Board of Director Votes in a meeting of Board of Directors.