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Subsidiary company

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Updated: Aug 20, 2021

In company law, a company is a subsidiary of another company: (1) if that other company is a member of it and controls the composition of its board of directors; (2) if that other company holds more than half (in nominal value) of its equity share capital; or (3) if it is a subsidiary of any company which is a subsidiary of the first company. The parent company is known as the holding company.

Reference: The Penguin Business Dictionary , 3rd edt.


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James is a lead content editor for Invezz. He's an avid trader and golfer, who spends an inordinate amount of time watching Leicester City and the… read more.