SherbyNet - /page/wikibook/entry.mu

Micron Document

<!DOCTYPE html>

<title>Subsidiary</title>

</head>

<span id="openzim-page-title" class="mw-page-title-main"><span class="mw-page-title-main">Subsidiary</span></span>

</h1>

</header>

/* start https://en.wikipedia.org/ */

.mw-parser-output .hatnote{font-style:italic}.mw-parser-output div.hatnote{padding-left:1.6em;margin-bottom:0.5em}.mw-parser-output .hatnote i{font-style:normal}.mw-parser-output .hatnote+link+.hatnote{margin-top:-0.5em}@media print{body.ns-0 .mw-parser-output .hatnote{display:none!important}}

/* end https://en.wikipedia.org/ */

</style><div role="note" class="hatnote navigation-not-searchable">Not to be confused with <a href="Subsidiarity" title="Subsidiarity">Subsidiarity</a> or <a href="Subsidy" title="Subsidy">Subsidy</a>.</div>

<p>A <b>subsidiary</b>, <b>subsidiary company</b>, or <b>daughter company</b><sup id="cite_ref-1" class="reference"><a href="#cite_note-1"><span class="cite-bracket">[</span>1<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-2" class="reference"><a href="#cite_note-2"><span class="cite-bracket">[</span>2<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-3" class="reference"><a href="#cite_note-3"><span class="cite-bracket">[</span>3<span class="cite-bracket">]</span></a></sup> is a <a href="Company_(law)" class="mw-redirect" title="Company (law)">company</a> completely or partially owned or controlled by another company, called the <a href="Parent_company" class="mw-redirect" title="Parent company">parent company</a> or <a href="Holding_company" title="Holding company">holding company</a>, which has legal and financial control over the subsidiary company.<sup id="cite_ref-4" class="reference"><a href="#cite_note-4"><span class="cite-bracket">[</span>4<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-5" class="reference"><a href="#cite_note-5"><span class="cite-bracket">[</span>5<span class="cite-bracket">]</span></a></sup> Unlike regional <a href="Branch_office" title="Branch office">branches</a> or <a href="Division_(business)" title="Division (business)">divisions</a>, subsidiaries are considered to be distinct entities from their parent companies; they are required to follow the laws of where they are incorporated, and they maintain their own executive leadership. Two or more subsidiaries primarily controlled by the same entity/group are considered to be <b>sister companies</b> of each other.

</p><p>Subsidiaries are a common feature of modern business, and most <a href="Multinational_corporation" title="Multinational corporation">multinational corporations</a> organize their operations via the creation and purchase of subsidiary companies.<sup id="cite_ref-Drucker_6-0" class="reference"><a href="#cite_note-Drucker-6"><span class="cite-bracket">[</span>6<span class="cite-bracket">]</span></a></sup> Examples of holding companies are <a href="Berkshire_Hathaway" title="Berkshire Hathaway">Berkshire Hathaway</a>,<sup id="cite_ref-7" class="reference"><a href="#cite_note-7"><span class="cite-bracket">[</span>7<span class="cite-bracket">]</span></a></sup> <a href="Jefferies_Financial_Group" title="Jefferies Financial Group">Jefferies Financial Group</a>, <a href="The_Walt_Disney_Company" title="The Walt Disney Company">The Walt Disney Company</a>, <a href="Warner_Bros._Discovery" title="Warner Bros. Discovery">Warner Bros. Discovery</a>, and <a href="Citigroup" title="Citigroup">Citigroup</a>, which have subsidiaries involved in many different <a href="Industry_(economics)" title="Industry (economics)">fields</a>. More focused companies include <a href="IBM" title="IBM">IBM</a>, <a href="Xerox" title="Xerox">Xerox</a>, and <a href="Microsoft" title="Microsoft">Microsoft</a>; they and their subsidiaries primarily operate within the <a href="Technology_company" title="Technology company">tech sector</a>. These, and others, organize their businesses into national and functional subsidiaries, often with multiple levels of subsidiaries.

</p>

<div class="mw-heading mw-heading2"><h2 id="Details">Details</h2></div>

/* start https://en.wikipedia.org/ */

.mw-parser-output .ambox{border:1px solid #a2a9b1;border-left:10px solid #36c;background-color:#fbfbfb;box-sizing:border-box}.mw-parser-output .ambox+link+.ambox,.mw-parser-output .ambox+link+style+.ambox,.mw-parser-output .ambox+link+link+.ambox,.mw-parser-output .ambox+.mw-empty-elt+link+.ambox,.mw-parser-output .ambox+.mw-empty-elt+link+style+.ambox,.mw-parser-output .ambox+.mw-empty-elt+link+link+.ambox{margin-top:-1px}html body.mediawiki .mw-parser-output .ambox.mbox-small-left{margin:4px 1em 4px 0;overflow:hidden;width:238px;border-collapse:collapse;font-size:88%;line-height:1.25em}.mw-parser-output .ambox-speedy{border-left:10px solid #b32424;background-color:#fee7e6}.mw-parser-output .ambox-delete{border-left:10px solid #b32424}.mw-parser-output .ambox-content{border-left:10px solid #f28500}.mw-parser-output .ambox-style{border-left:10px solid #fc3}.mw-parser-output .ambox-move{border-left:10px solid #9932cc}.mw-parser-output .ambox-protection{border-left:10px solid #a2a9b1}.mw-parser-output .ambox .mbox-text{border:none;padding:0.25em 0.5em;width:100%}.mw-parser-output .ambox .mbox-image{border:none;padding:2px 0 2px 0.5em;text-align:center}.mw-parser-output .ambox .mbox-imageright{border:none;padding:2px 0.5em 2px 0;text-align:center}.mw-parser-output .ambox .mbox-empty-cell{border:none;padding:0;width:1px}.mw-parser-output .ambox .mbox-image-div{width:52px}@media(min-width:720px){.mw-parser-output .ambox{margin:0 10%}}@media print{body.ns-0 .mw-parser-output .ambox{display:none!important}}

/* end https://en.wikipedia.org/ */

</style>

<p>Subsidiaries are separate, distinct <a href="Commercial_law" title="Commercial law">legal</a> entities for the purposes of <a href="Tax" title="Tax">taxation</a>, <a href="Regulation" title="Regulation">regulation</a> and <a href="Legal_liability" title="Legal liability">liability</a>. For this reason, they differ from <a href="Division_(organization)" class="mw-redirect" title="Division (organization)">divisions</a> which are businesses fully integrated within the main company, and not legally or otherwise distinct from it.<sup id="cite_ref-8" class="reference"><a href="#cite_note-8"><span class="cite-bracket">[</span>8<span class="cite-bracket">]</span></a></sup> In other words, a subsidiary can sue and be sued separately from its parent and its obligations will not normally be the obligations of its parent. However, creditors of an insolvent subsidiary may be able to obtain a judgment against the parent if they can <a href="Piercing_the_corporate_veil" title="Piercing the corporate veil">pierce the corporate veil</a> and prove that the parent and subsidiary are mere <a href="Alter_egos" class="mw-redirect" title="Alter egos">alter egos</a> of one another. Thus any copyrights, trademarks, and patents remain with the subsidiary until the parent shuts down the subsidiary.

</p><p>Ownership of a subsidiary is usually achieved by owning a majority of its <a href="Share_(finance)" title="Share (finance)">shares</a>. This gives the parent the necessary votes to elect their nominees as directors of the subsidiary, and so exercise control. This gives rise to the common presumption that 50% plus one share is enough to create a subsidiary. There are, however, other ways that control can come about, and the exact rules both as to what control is needed, and how it is achieved, can be complex (see below). A subsidiary may itself have subsidiaries, and these, in turn, may have subsidiaries of their own. A parent and all its subsidiaries together are called a <a href="Corporate_group" title="Corporate group">corporate</a>, although this term can also apply to cooperating companies and their subsidiaries with varying degrees of shared ownership.

</p><p>A parent company does not have to be the larger or "more powerful" entity; it is possible for the parent company to be smaller than a subsidiary, such as <a href="Danjaq" title="Danjaq">DanJaq</a>, a closely held family company, which controls <a href="Eon_Productions" title="Eon Productions">Eon Productions</a>, the large corporation which manages the <a href="James_Bond" title="James Bond">James Bond</a> franchise. Conversely, the parent may be larger than some or all of its subsidiaries (if it has more than one), as the relationship is defined by control of ownership shares, not the number of employees.

</p><p>The parent and the subsidiary do not necessarily have to operate in the same locations or operate the same businesses. Not only is it possible that they could conceivably be competitors in the marketplace, but such arrangements happen frequently at the end of a <a href="Hostile_takeover" class="mw-redirect" title="Hostile takeover">hostile takeover</a> or voluntary merger. Also, because a parent company and a subsidiary are separate entities, it is entirely possible for one of them to be involved in legal proceedings, bankruptcy, tax delinquency, indictment or under investigation while the other is not.<sup id="cite_ref-9" class="reference"><a href="#cite_note-9"><span class="cite-bracket">[</span>9<span class="cite-bracket">]</span></a></sup>

</p>

<div class="mw-heading mw-heading2"><h2 id="Tiered_subsidiaries">Tiered subsidiaries</h2></div>

<p>In descriptions of larger corporate structures, the terms "first-tier subsidiary", "second-tier subsidiary", "third-tier subsidiary", etc. describe multiple levels of subsidiaries. A first-tier subsidiary is a subsidiary/child company of the ultimate parent company,<sup id="cite_ref-10" class="reference"><a href="#cite_note-10"><span class="cite-bracket">[</span>note 1<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-Chron_11-0" class="reference"><a href="#cite_note-Chron-11"><span class="cite-bracket">[</span>10<span class="cite-bracket">]</span></a></sup> while a second-tier subsidiary is a subsidiary of a first-tier subsidiary: a "grandchild" of the main parent company.<sup id="cite_ref-12" class="reference"><a href="#cite_note-12"><span class="cite-bracket">[</span>11<span class="cite-bracket">]</span></a></sup> Consequently, a third-tier subsidiary is a subsidiary of a second-tier subsidiary—a "great-grandchild" of the main parent company.

</p><p>The ownership structure of the small British specialist company Ford Component Sales, which sells Ford components to specialist car manufacturers and <a href="OEM" class="mw-redirect" title="OEM">OEM</a> manufacturers, such as <a href="Morgan_Motor_Company" title="Morgan Motor Company">Morgan Motor Company</a> and <a href="Caterham_Cars" title="Caterham Cars">Caterham Cars</a>,<sup id="cite_ref-13" class="reference"><a href="#cite_note-13"><span class="cite-bracket">[</span>12<span class="cite-bracket">]</span></a></sup> illustrates how multiple levels of subsidiaries are used in large corporations:

</p>

<ul><li><a href="Ford_Motor_Company" title="Ford Motor Company">Ford Motor Company</a> – U.S. parent company based in <a href="Dearborn%2C_Michigan" title="Dearborn, Michigan">Dearborn</a>, <a href="Michigan" title="Michigan">Michigan</a>

<ul><li>Ford International Capital LLC – First-tier subsidiary (U.S. holding company located in Dearborn, Michigan, but registered in <a href="Delaware" title="Delaware">Delaware</a>)<sup id="cite_ref-SEC_14-0" class="reference"><a href="#cite_note-SEC-14"><span class="cite-bracket">[</span>13<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-15" class="reference"><a href="#cite_note-15"><span class="cite-bracket">[</span>14<span class="cite-bracket">]</span></a></sup>

<ul><li>Ford Technologies Limited – Second-tier subsidiary (British holding company, located at the Ford UK head office in <a href="Brentwood%2C_Essex" title="Brentwood, Essex">Brentwood</a>, <a href="Essex" title="Essex">Essex</a>, with five employees)<sup id="cite_ref-16" class="reference"><a href="#cite_note-16"><span class="cite-bracket">[</span>15<span class="cite-bracket">]</span></a></sup>

<ul><li><a href="Ford_of_Britain" title="Ford of Britain">Ford Motor Company Limited</a> – Third-tier subsidiary (the main British Ford company, with head office in Brentwood, with 10,500 employees)<sup id="cite_ref-17" class="reference"><a href="#cite_note-17"><span class="cite-bracket">[</span>16<span class="cite-bracket">]</span></a></sup></li></ul></li></ul></li></ul></li></ul>

<div class="mw-heading mw-heading2"><h2 id="Control">Control</h2></div>

<div class="mw-heading mw-heading3"><h3 id="General">General</h3></div>

<p>The word "control" and its derivatives (subsidiary and parent) may have different meanings in different contexts. These concepts may have different meanings in various areas of law (e.g. <a href="Corporate_law" title="Corporate law">corporate law</a>, <a href="Competition_law" title="Competition law">competition law</a>, <a href="Capital_markets_law" class="mw-redirect" title="Capital markets law">capital markets law</a>) or in <a href="Accounting" title="Accounting">accounting</a>. For example, if Company A purchases shares in Company B, it is possible that the transaction is not subject to <a href="Merger_control" title="Merger control">merger control</a> (because Company A had been deemed to already control Company B before the share purchase, under competition law rules), but at the same time Company A may be required to start consolidating Company B into its financial statements under the relevant accounting rules (because it had been treated as a <a href="Joint_venture" title="Joint venture">joint venture</a> before the purchase for accounting purposes).

</p><p>Control can be direct (e.g., an ultimate parent company controls the first-tier subsidiary directly) or indirect (e.g., an ultimate parent company controls second and lower tiers of subsidiaries indirectly, through first-tier subsidiaries).

</p>

<div class="mw-heading mw-heading3"><h3 id="European_Union">European Union</h3></div>

<p>Recital 31 of Directive 2013/34/EU<sup id="cite_ref-18" class="reference"><a href="#cite_note-18"><span class="cite-bracket">[</span>17<span class="cite-bracket">]</span></a></sup> stipulates that control should be based on holding a majority of voting rights, but control may also exist where there are agreements with fellow shareholders or members. In certain circumstances, control may be effectively exercised where the parent holds a minority or none of the shares in the subsidiary.

</p><p>According to Article 22 of the directive 2013/34/EU an undertaking is a parent if it:

</p>

<ul><li>has a majority of the shareholders' or members' voting rights in another undertaking (a subsidiary undertaking);</li>

<li>has the right to appoint or remove a majority of the members of the administrative, management or supervisory body of another undertaking (a subsidiary undertaking) and is at the same time a shareholder in or member of that undertaking;</li>

<li>has the right to exercise a dominant influence over an undertaking (a subsidiary undertaking) of which it is a shareholder or member, pursuant to a contract entered into with that undertaking or to a provision in its memorandum or articles of association, where the law governing that subsidiary undertaking permits its being subject to such contracts or provisions.</li>

<li>is a shareholder in or member of an undertaking, and:

<ul><li>a majority of the members of the administrative, management or supervisory bodies of that undertaking (a subsidiary undertaking) who have held office during the financial year, during the preceding financial year and up to the time when the consolidated financial statements are drawn up, have been appointed solely as a result of the exercise of its voting rights; or</li>

<li>controls alone, pursuant to an agreement with other shareholders in or members of that undertaking (a subsidiary undertaking), a majority of shareholders' or members' voting rights in that undertaking.</li></ul></li></ul>

<p>Additionally, control may arise when:

</p>

<ul><li>a parent undertaking has the power to exercise, or actually exercises, dominant influence or control over another undertaking (the subsidiary undertaking); or</li>

<li>a parent undertaking and another undertaking (the subsidiary undertaking) are managed on a unified basis by the parent undertaking.</li></ul>

<p>Under the international accounting standards adopted by the EU<sup id="cite_ref-19" class="reference"><a href="#cite_note-19"><span class="cite-bracket">[</span>18<span class="cite-bracket">]</span></a></sup> a company is deemed to control another company only if it has all the following:

</p>

<ul><li>power over the other company;</li>

<li>exposure, or rights, to variable returns from its involvement with the other company; and</li>

<li>the ability to use its power over the other company to affect the number of the company's returns (<a href="IFRS" class="mw-redirect" title="IFRS">IFRS</a> 10 para 7). Power generally arises when the parent has rights that give it the ability to direct the relevant activities, i.e. the activities that significantly affect the other subsidiary's returns.</li></ul>

<p>A subsidiary can have only one parent; otherwise, the subsidiary is, in fact, a joint arrangement (joint operation or joint venture) over which two or more parties have joint control (IFRS 11 para 4). Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control.

</p>

<div class="mw-heading mw-heading3"><h3 id="United_Kingdom">United Kingdom</h3></div>

<p>The <a href="Companies_Act_2006" title="Companies Act 2006">Companies Act 2006</a> contains two definitions: one of "subsidiary" and the other "subsidiary undertaking".

</p><p>According to s.1159 of the Act, a company is a "subsidiary" of another company, its "holding company", if that other company:

</p>

<ul><li>holds a majority of the voting rights in it, or</li>

<li>is a member of it and has the right to appoint or remove a majority of its board of directors, or</li>

<li>is a member of it and controls alone, pursuant to an agreement with other members, a majority of the voting rights in it, or if it is a subsidiary of a company that is itself a subsidiary of that other company.</li></ul>

<p>The second definition is broader. According to s.1162 of the Companies Act 2006, an undertaking is a parent undertaking in relation to another undertaking, a subsidiary undertaking, if:

</p>

<ul><li>it holds a majority of the voting rights in the undertaking, or</li>

<li>it is a member of the undertaking and has the right to appoint or remove a majority of its board of directors, or</li>

<li>it has the right to exercise a dominant influence over the undertaking—

<ul><li>by virtue of provisions contained in the undertaking's articles, or</li>

<li>by virtue of a control contract, or</li></ul></li>

<li>it is a member of the undertaking and controls alone, pursuant to an agreement with other shareholders or members, a majority of the voting rights in the undertaking.</li></ul>

<p>An undertaking is also a parent undertaking in relation to another undertaking, a subsidiary undertaking, if:

</p>

<ul><li>it has the power to exercise, or actually exercises, dominant influence or control over it, or</li>

<li>it and the subsidiary undertaking are managed on a unified basis.</li></ul>

<p>The broader definition of "subsidiary undertaking" is applied to the accounting provisions of the Companies Act 2006, while the definition of "subsidiary" is used for general purposes.<sup id="cite_ref-20" class="reference"><a href="#cite_note-20"><span class="cite-bracket">[</span>19<span class="cite-bracket">]</span></a></sup>

</p>

<div class="mw-heading mw-heading3"><h3 id="Oceania">Oceania</h3></div>

<p>In <a href="Oceania" title="Oceania">Oceania</a>, the accounting standards defined the circumstances in which one entity controls another. In doing so, they largely abandoned the legal control concepts in favour of a definition that provides that "control" is "the capacity of an entity to dominate decision-making, directly or indirectly, in relation to the financial and operating policies of another entity so as to enable that other entity to operate with it in pursuing the objectives of the controlling entity". This definition was adapted in the <a href="Australia" title="Australia">Australian</a> <a href="Corporations_Act_2001" title="Corporations Act 2001">Corporations Act 2001</a>: s 50AA.<sup id="cite_ref-21" class="reference"><a href="#cite_note-21"><span class="cite-bracket">[</span>20<span class="cite-bracket">]</span></a></sup> Furthermore, it can be a useful part of the company that allows every head of the company to apply new projects and latest rules.

</p>

<ul><li><a href="Chaebol" title="Chaebol">Chaebol</a></li>

<li><a href="Conglomerate_(company)" title="Conglomerate (company)">Conglomerate</a></li>

<li><a href="Keiretsu" title="Keiretsu">Keiretsu</a></li>

<li><a href="Zaibatsu" title="Zaibatsu">Zaibatsu</a></li>

<li><a href="Associate_company" title="Associate company">Associate company</a></li>

<li><a href="Consolidation_(business)" title="Consolidation (business)">Consolidation (business)</a></li>

<li><a href="Control_premium" title="Control premium">Control premium</a></li>

<li><a href="Controlling_interest" title="Controlling interest">Controlling interest</a></li>

<li><a href="Cooperative_federation" title="Cooperative federation">Cooperative federation</a></li>

<li><a href="Division_(business)" title="Division (business)">Division (business)</a></li>

<li><a href="Joint_venture" title="Joint venture">Joint venture</a></li>

<li><a href="Enterprise_value" title="Enterprise value">Enterprise value</a></li>

<li><a href="Equity_method" title="Equity method">Equity method</a></li>

<li><a href="Good_standing" title="Good standing">Good standing</a></li>

<li><a href="Goodwill_(accounting)" title="Goodwill (accounting)">Goodwill (accounting)</a></li>

<li><a href="Mergers_and_acquisitions" title="Mergers and acquisitions">Mergers and acquisitions</a></li>

<li><a href="Minority_interest" title="Minority interest">Minority interest</a></li>

<li><a href="Peren-Clement-Index" class="mw-redirect" title="Peren-Clement-Index">Peren-Clement-Index</a></li></ul>

<div class="mw-heading mw-heading2"><h2 id="Notes">Notes</h2></div>

<li id="cite_note-10"><span class="mw-cite-backlink"><b><a href="#cite_ref-10">^</a></b></span> <span class="reference-text">As with human family trees, each level above one level is the parent of the level below, so the term "parent company" in itself does not necessarily refer to the company at the top of the tree, so here "ultimate parent company" has been used for that.</span>

</li>

</ol></div>

<div class="mw-heading mw-heading2"><h2 id="References">References</h2></div>

/* start https://en.wikipedia.org/ */

.mw-parser-output .reflist{margin-bottom:0.5em;list-style-type:decimal}@media screen{.mw-parser-output .reflist{font-size:90%}}.mw-parser-output .reflist .references{font-size:100%;margin-bottom:0;list-style-type:inherit}.mw-parser-output .reflist-columns-2{column-width:30em}.mw-parser-output .reflist-columns-3{column-width:25em}.mw-parser-output .reflist-columns{margin-top:0.3em}.mw-parser-output .reflist-columns ol{margin-top:0}.mw-parser-output .reflist-columns li{page-break-inside:avoid;break-inside:avoid-column}.mw-parser-output .reflist-upper-alpha{list-style-type:upper-alpha}.mw-parser-output .reflist-upper-roman{list-style-type:upper-roman}.mw-parser-output .reflist-lower-alpha{list-style-type:lower-alpha}.mw-parser-output .reflist-lower-greek{list-style-type:lower-greek}.mw-parser-output .reflist-lower-roman{list-style-type:lower-roman}

/* end https://en.wikipedia.org/ */

</style><div class="reflist">

<li id="cite_note-1"><span class="mw-cite-backlink"><b><a href="#cite_ref-1">^</a></b></span> <span class="reference-text">"daughter company = subsidiary: a company that is completely or partly owned by another company" Longman Business English Dictionary</span>

</li>

/* start https://en.wikipedia.org/ */

.mw-parser-output cite.citation{font-style:inherit;word-wrap:break-word}.mw-parser-output .citation q{quotes:"\"""\"""'""'"}.mw-parser-output .citation:target{background-color:rgba(0,127,255,0.133)}.mw-parser-output .id-lock-free.id-lock-free a{background:url("./mw/Lock-green.svg")right 0.1em center/9px no-repeat}.mw-parser-output .id-lock-limited.id-lock-limited a,.mw-parser-output .id-lock-registration.id-lock-registration a{background:url("./mw/Lock-gray-alt-2.svg")right 0.1em center/9px no-repeat}.mw-parser-output .id-lock-subscription.id-lock-subscription a{background:url("./mw/Lock-red-alt-2.svg")right 0.1em center/9px no-repeat}.mw-parser-output .cs1-ws-icon a{background:url("./mw/Wikisource-logo.svg")right 0.1em center/12px no-repeat}body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-free a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-limited a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-registration a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-subscription a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .cs1-ws-icon a{background-size:contain;padding:0 1em 0 0}.mw-parser-output .cs1-code{color:inherit;background:inherit;border:none;padding:inherit}.mw-parser-output .cs1-hidden-error{display:none;color:var(--color-error,#d33)}.mw-parser-output .cs1-visible-error{color:var(--color-error,#d33)}.mw-parser-output .cs1-maint{display:none;color:#085;margin-left:0.3em}.mw-parser-output .cs1-kern-left{padding-left:0.2em}.mw-parser-output .cs1-kern-right{padding-right:0.2em}.mw-parser-output .citation .mw-selflink{font-weight:inherit}@media screen{.mw-parser-output .cs1-format{font-size:95%}html.skin-theme-clientpref-night .mw-parser-output .cs1-maint{color:#18911f}}@media screen and (prefers-color-scheme:dark){html.skin-theme-clientpref-os .mw-parser-output .cs1-maint{color:#18911f}}

/* end https://en.wikipedia.org/ */

</style><cite class="citation web cs1"><a rel="nofollow" class="external text" href="http://www.investopedia.com/ask/answers/031915/what-difference-between-subsidiary-and-sister-company.asp">"Subsidiary vs. Sister Company: What's the Difference?"</a>. <i>Investopedia</i>. <a rel="nofollow" class="external text" href="https://web.archive.org/web/20191220100956/https://www.investopedia.com/ask/answers/031915/what-difference-between-subsidiary-and-sister-company.asp">Archived</a> from the original on 2019-12-20. <q>A subsidiary functions as a separate legal entity rather than a division of the parent company. It is sometimes referred to as a daughter company.</q></cite></span>

</li>

<li id="cite_note-3"><span class="mw-cite-backlink"><b><a href="#cite_ref-3">^</a></b></span> <span class="reference-text"><cite class="citation web cs1"><a rel="nofollow" class="external text" href="https://web.archive.org/web/20160625172156/http://lexicon.ft.com/Term?term=daughter-company">"Daughter Company Definition"</a>. Financial Times Lexicon. Archived from <a rel="nofollow" class="external text" href="http://lexicon.ft.com/Term?term=daughter-company">the original</a> on 2016-06-25<span class="reference-accessdate">. Retrieved <span class="nowrap">2013-09-29</span></span>.</cite></span>

</li>

<li id="cite_note-4"><span class="mw-cite-backlink"><b><a href="#cite_ref-4">^</a></b></span> <span class="reference-text"><cite id="CITEREFBurke2018" class="citation web cs1">Burke, Alex (October 26, 2018). <a rel="nofollow" class="external text" href="http://smallbusiness.chron.com/difference-between-subsidiary-sister-company-35043.html">"What Is the Difference Between a Subsidiary & a Sister Company?"</a>. <i>Small Business - Chron</i>. <a rel="nofollow" class="external text" href="https://web.archive.org/web/20191221111306/https://smallbusiness.chron.com/difference-between-subsidiary-sister-company-35043.html">Archived</a> from the original on 2019-12-21<span class="reference-accessdate">. Retrieved <span class="nowrap">2015-05-20</span></span>.</cite></span>

</li>

<li id="cite_note-5"><span class="mw-cite-backlink"><b><a href="#cite_ref-5">^</a></b></span> <span class="reference-text"><cite class="citation web cs1"><a rel="nofollow" class="external text" href="http://www.merriam-webster.com/dictionary/subsidiary">"Subsidiary Definition & Meaning"</a>. Merriam-Webster Dictionary. <a rel="nofollow" class="external text" href="https://web.archive.org/web/20160820151745/http://www.merriam-webster.com/dictionary/subsidiary">Archived</a> from the original on 2016-08-20<span class="reference-accessdate">. Retrieved <span class="nowrap">2015-01-15</span></span>.</cite></span>

</li>

<li id="cite_note-Drucker-6"><span class="mw-cite-backlink"><b><a href="#cite_ref-Drucker_6-0">^</a></b></span> <span class="reference-text"><cite id="CITEREFDrucker1997" class="citation journal cs1">Drucker, Peter F. (September–October 1997). <span class="id-lock-subscription" title="Paid subscription required"><a rel="nofollow" class="external text" href="https://www.foreignaffairs.com/articles/1997-09-01/global-economy-and-nation-state">"The Global Economy and the Nation-State"</a></span>. <i>Foreign Affairs</i>. <b>76</b> (5). Council on Foreign Relations: <span class="nowrap">159–</span>171. <a href="Doi_(identifier)" class="mw-redirect" title="Doi (identifier)">doi</a>:<a rel="nofollow" class="external text" href="https://doi.org/10.2307%2F20048206">10.2307/20048206</a>. <a href="JSTOR_(identifier)" class="mw-redirect" title="JSTOR (identifier)">JSTOR</a> <a rel="nofollow" class="external text" href="https://www.jstor.org/stable/20048206">20048206</a>. <a rel="nofollow" class="external text" href="https://web.archive.org/web/20191031145717/https://www.foreignaffairs.com/articles/1997-09-01/global-economy-and-nation-state">Archived</a> from the original on 2019-10-31<span class="reference-accessdate">. Retrieved <span class="nowrap">2016-10-14</span></span>.</cite></span>

</li>

<li id="cite_note-7"><span class="mw-cite-backlink"><b><a href="#cite_ref-7">^</a></b></span> <span class="reference-text"><cite class="citation web cs1"><a rel="nofollow" class="external text" href="http://www.berkshirehathaway.com/subs/sublinks.html">"Links To Berkshire Hathaway Sub. Companies"</a>. Berkshire Hathaway Inc. <a rel="nofollow" class="external text" href="https://web.archive.org/web/20200415054247/https://www.berkshirehathaway.com/subs/sublinks.html">Archived</a> from the original on 2020-04-15<span class="reference-accessdate">. Retrieved <span class="nowrap">2013-09-29</span></span>.</cite></span>

</li>

<li id="cite_note-8"><span class="mw-cite-backlink"><b><a href="#cite_ref-8">^</a></b></span> <span class="reference-text"><cite id="CITEREFLehmanPhelps2005" class="citation book cs1">Lehman, Jeffrey; Phelps, Shirelle (2005). <i>West's Encyclopedia of American Law, Vol. 9</i> (2 ed.). Detroit: Thomson/Gale. p. 387. <a href="ISBN_(identifier)" class="mw-redirect" title="ISBN (identifier)">ISBN</a> <bdi>9780787663766</bdi>.</cite></span>

</li>

<li id="cite_note-9"><span class="mw-cite-backlink"><b><a href="#cite_ref-9">^</a></b></span> <span class="reference-text"><cite class="citation web cs1"><a rel="nofollow" class="external text" href="https://corporatefinanceinstitute.com/resources/accounting/subsidiary-definition/">"Subsidiary"</a>. <i>Corporate Finance Institute</i><span class="reference-accessdate">. Retrieved <span class="nowrap">2024-06-21</span></span>.</cite></span>

</li>

<li id="cite_note-Chron-11"><span class="mw-cite-backlink"><b><a href="#cite_ref-Chron_11-0">^</a></b></span> <span class="reference-text"><a rel="nofollow" class="external text" href="http://smallbusiness.chron.com/first-tier-subsidiary-34982.html">Houston Chronicle Small Business sector: <i>What Is a First Tier Subsidiary?</i></a> <a rel="nofollow" class="external text" href="https://web.archive.org/web/20130514084055/http://smallbusiness.chron.com/first-tier-subsidiary-34982.html">Archived</a> 2013-05-14 at the <a href="Wayback_Machine" title="Wayback Machine">Wayback Machine</a> Retrieved 2013-04-12</span>

</li>

<li id="cite_note-12"><span class="mw-cite-backlink"><b><a href="#cite_ref-12">^</a></b></span> <span class="reference-text"><a rel="nofollow" class="external text" href="http://definitions.uslegal.com/s/second-tier-subsidiary/">USLegal: <i>Second-Tier Subsidiary Law & Legal Definition</i></a> <a rel="nofollow" class="external text" href="https://web.archive.org/web/20130130111842/http://definitions.uslegal.com/s/second-tier-subsidiary/">Archived</a> 2013-01-30 at the <a href="Wayback_Machine" title="Wayback Machine">Wayback Machine</a> Retrieved 2013-04-12</span>

</li>

<li id="cite_note-13"><span class="mw-cite-backlink"><b><a href="#cite_ref-13">^</a></b></span> <span class="reference-text"><a rel="nofollow" class="external text" href="http://www.ford.co.uk/experience-ford/AboutFord/Fordcomponentsales">Ford Component Sales Ltd: <i>High quality components for a variety of uses</i></a> <a rel="nofollow" class="external text" href="https://web.archive.org/web/20130401022058/http://www.ford.co.uk/experience-ford/AboutFord/Fordcomponentsales">Archived</a> 2013-04-01 at the <a href="Wayback_Machine" title="Wayback Machine">Wayback Machine</a> Retrieved 2013-04-12</span>

</li>

<li id="cite_note-SEC-14"><span class="mw-cite-backlink"><b><a href="#cite_ref-SEC_14-0">^</a></b></span> <span class="reference-text"><a rel="nofollow" class="external text" href="https://www.sec.gov/Archives/edgar/data/37996/000115752311001210/a6622311_ex21.htm">SEC: <i>Subsidiaries of Ford Motor Company as of February 11, 2011</i></a> <a rel="nofollow" class="external text" href="https://web.archive.org/web/20160531101138/http://www.sec.gov/Archives/edgar/data/37996/000115752311001210/a6622311_ex21.htm">Archived</a> May 31, 2016, at the <a href="Wayback_Machine" title="Wayback Machine">Wayback Machine</a> Retrieved 2013-04-12</span>

</li>

<li id="cite_note-15"><span class="mw-cite-backlink"><b><a href="#cite_ref-15">^</a></b></span> <span class="reference-text"><a rel="nofollow" class="external text" href="http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=35697873">Bloomberg Businessweek: <i>Company Overview of Ford International Capital LLC</i></a> <a rel="nofollow" class="external text" href="https://web.archive.org/web/20130502010229/http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=35697873">Archived</a> 2013-05-02 at the <a href="Wayback_Machine" title="Wayback Machine">Wayback Machine</a>, page 2 Retrieved 2013-04-12</span>

</li>

<li id="cite_note-16"><span class="mw-cite-backlink"><b><a href="#cite_ref-16">^</a></b></span> <span class="reference-text"><a rel="nofollow" class="external text" href="https://www.duedil.com/company/04850367/blue-oval-holdings">Duedil: <i>Blue Oval Holdings</i></a> <a rel="nofollow" class="external text" href="https://web.archive.org/web/20140225125356/https://www.duedil.com/company/04850367/blue-oval-holdings">Archived</a> 2014-02-25 at the <a href="Wayback_Machine" title="Wayback Machine">Wayback Machine</a> Retrieved 2013-04-12</span>

</li>

<li id="cite_note-17"><span class="mw-cite-backlink"><b><a href="#cite_ref-17">^</a></b></span> <span class="reference-text"><a rel="nofollow" class="external text" href="https://www.duedil.com/company/00235446/ford-motor-company-limited">Duedil: <i>Ford Motor Company Limited</i></a> <a rel="nofollow" class="external text" href="https://web.archive.org/web/20140225121904/https://www.duedil.com/company/00235446/ford-motor-company-limited">Archived</a> 2014-02-25 at the <a href="Wayback_Machine" title="Wayback Machine">Wayback Machine</a> Retrieved 2013-04-12</span>

</li>

<li id="cite_note-18"><span class="mw-cite-backlink"><b><a href="#cite_ref-18">^</a></b></span> <span class="reference-text"><cite class="citation web cs1"><a rel="nofollow" class="external text" href="http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex:32013L0034">"Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013 on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings, amending Directive 2006/43/EC of the European Parliament and of the Council and repealing Council Directives 78/660/EEC and 83/349/EEC"</a>. 29 June 2013. <a rel="nofollow" class="external text" href="https://web.archive.org/web/20150429214243/http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex:32013L0034">Archived</a> from the original on 29 April 2015<span class="reference-accessdate">. Retrieved <span class="nowrap">2015-01-15</span></span>.</cite></span>

</li>

<li id="cite_note-19"><span class="mw-cite-backlink"><b><a href="#cite_ref-19">^</a></b></span> <span class="reference-text"><cite class="citation web cs1"><a rel="nofollow" class="external text" href="http://eur-lex.europa.eu/legal-content/EN/ALL/?uri=OJ:L:2008:320:TOC">"COMMISSION REGULATION (EC) No 1126/2008 of 3 November 2008 adopting certain international accounting standards in accordance with Regulation (EC) No 1606/2002 of the European Parliament and of the Council"</a>. <a rel="nofollow" class="external text" href="https://web.archive.org/web/20160305011904/http://eur-lex.europa.eu/legal-content/EN/ALL/?uri=OJ:L:2008:320:TOC">Archived</a> from the original on 2016-03-05<span class="reference-accessdate">. Retrieved <span class="nowrap">2015-01-15</span></span>.</cite></span>

</li>

<li id="cite_note-20"><span class="mw-cite-backlink"><b><a href="#cite_ref-20">^</a></b></span> <span class="reference-text"><cite class="citation web cs1"><a rel="nofollow" class="external text" href="http://www.bailii.org/uk/cases/UKSC/2011/16.html">"Farstad Supply AS v Enviroco Ltd [2011] UKSC 16, para 16"</a>. <a rel="nofollow" class="external text" href="https://web.archive.org/web/20140629193620/http://www.bailii.org/uk/cases/UKSC/2011/16.html">Archived</a> from the original on 2014-06-29<span class="reference-accessdate">. Retrieved <span class="nowrap">2015-01-19</span></span>.</cite></span>

</li>

<li id="cite_note-21"><span class="mw-cite-backlink"><b><a href="#cite_ref-21">^</a></b></span> <span class="reference-text"><cite class="citation web cs1"><a rel="nofollow" class="external text" href="http://www.austlii.edu.au/au/legis/cth/consol_act/ca2001172/s50aa.html">"CORPORATIONS ACT 2001 - SECT 50AA Control"</a>. Austlii.edu.au. <a rel="nofollow" class="external text" href="https://web.archive.org/web/20130621050217/http://www.austlii.edu.au/au/legis/cth/consol_act/ca2001172/s50aa.html">Archived</a> from the original on 2013-06-21<span class="reference-accessdate">. Retrieved <span class="nowrap">2013-09-29</span></span>.</cite></span>

</li>

</ol></div></div>

/* start https://en.wikipedia.org/ */

.mw-parser-output .hlist dl,.mw-parser-output .hlist ol,.mw-parser-output .hlist ul{margin:0;padding:0}.mw-parser-output .hlist dd,.mw-parser-output .hlist dt,.mw-parser-output .hlist li{margin:0;display:inline}.mw-parser-output .hlist.inline,.mw-parser-output .hlist.inline dl,.mw-parser-output .hlist.inline ol,.mw-parser-output .hlist.inline ul,.mw-parser-output .hlist dl dl,.mw-parser-output .hlist dl ol,.mw-parser-output .hlist dl ul,.mw-parser-output .hlist ol dl,.mw-parser-output .hlist ol ol,.mw-parser-output .hlist ol ul,.mw-parser-output .hlist ul dl,.mw-parser-output .hlist ul ol,.mw-parser-output .hlist ul ul{display:inline}.mw-parser-output .hlist .mw-empty-li{display:none}.mw-parser-output .hlist dt::after{content:": "}.mw-parser-output .hlist dd::after,.mw-parser-output .hlist li::after{content:" · ";font-weight:bold}.mw-parser-output .hlist dd:last-child::after,.mw-parser-output .hlist dt:last-child::after,.mw-parser-output .hlist li:last-child::after{content:none}.mw-parser-output .hlist dd dd:first-child::before,.mw-parser-output .hlist dd dt:first-child::before,.mw-parser-output .hlist dd li:first-child::before,.mw-parser-output .hlist dt dd:first-child::before,.mw-parser-output .hlist dt dt:first-child::before,.mw-parser-output .hlist dt li:first-child::before,.mw-parser-output .hlist li dd:first-child::before,.mw-parser-output .hlist li dt:first-child::before,.mw-parser-output .hlist li li:first-child::before{content:" (";font-weight:normal}.mw-parser-output .hlist dd dd:last-child::after,.mw-parser-output .hlist dd dt:last-child::after,.mw-parser-output .hlist dd li:last-child::after,.mw-parser-output .hlist dt dd:last-child::after,.mw-parser-output .hlist dt dt:last-child::after,.mw-parser-output .hlist dt li:last-child::after,.mw-parser-output .hlist li dd:last-child::after,.mw-parser-output .hlist li dt:last-child::after,.mw-parser-output .hlist li li:last-child::after{content:")";font-weight:normal}.mw-parser-output .hlist ol{counter-reset:listitem}.mw-parser-output .hlist ol>li{counter-increment:listitem}.mw-parser-output .hlist ol>li::before{content:" "counter(listitem)"\a0 "}.mw-parser-output .hlist dd ol>li:first-child::before,.mw-parser-output .hlist dt ol>li:first-child::before,.mw-parser-output .hlist li ol>li:first-child::before{content:" ("counter(listitem)"\a0 "}

/* end https://en.wikipedia.org/ */

</style><style data-mw-deduplicate="TemplateStyles:r1236075235">

/* start https://en.wikipedia.org/ */

.mw-parser-output .navbox{box-sizing:border-box;border:1px solid #a2a9b1;width:100%;clear:both;font-size:88%;text-align:center;padding:1px;margin:1em auto 0}.mw-parser-output .navbox .navbox{margin-top:0}.mw-parser-output .navbox+.navbox,.mw-parser-output .navbox+.navbox-styles+.navbox{margin-top:-1px}.mw-parser-output .navbox-inner,.mw-parser-output .navbox-subgroup{width:100%}.mw-parser-output .navbox-group,.mw-parser-output .navbox-title,.mw-parser-output .navbox-abovebelow{padding:0.25em 1em;line-height:1.5em;text-align:center}.mw-parser-output .navbox-group{white-space:nowrap;text-align:right}.mw-parser-output .navbox,.mw-parser-output .navbox-subgroup{background-color:#fdfdfd}.mw-parser-output .navbox-list{line-height:1.5em;border-color:#fdfdfd}.mw-parser-output .navbox-list-with-group{text-align:left;border-left-width:2px;border-left-style:solid}.mw-parser-output tr+tr>.navbox-abovebelow,.mw-parser-output tr+tr>.navbox-group,.mw-parser-output tr+tr>.navbox-image,.mw-parser-output tr+tr>.navbox-list{border-top:2px solid #fdfdfd}.mw-parser-output .navbox-title{background-color:#ccf}.mw-parser-output .navbox-abovebelow,.mw-parser-output .navbox-group,.mw-parser-output .navbox-subgroup .navbox-title{background-color:#ddf}.mw-parser-output .navbox-subgroup .navbox-group,.mw-parser-output .navbox-subgroup .navbox-abovebelow{background-color:#e6e6ff}.mw-parser-output .navbox-even{background-color:#f7f7f7}.mw-parser-output .navbox-odd{background-color:transparent}.mw-parser-output .navbox .hlist td dl,.mw-parser-output .navbox .hlist td ol,.mw-parser-output .navbox .hlist td ul,.mw-parser-output .navbox td.hlist dl,.mw-parser-output .navbox td.hlist ol,.mw-parser-output .navbox td.hlist ul{padding:0.125em 0}.mw-parser-output .navbox .navbar{display:block;font-size:100%}.mw-parser-output .navbox-title .navbar{float:left;text-align:left;margin-right:0.5em}body.skin--responsive .mw-parser-output .navbox-image img{max-width:none!important}@media print{body.ns-0 .mw-parser-output .navbox{display:none!important}}

/* end https://en.wikipedia.org/ */

</style><style data-mw-deduplicate="TemplateStyles:r1038841319">

/* start https://en.wikipedia.org/ */

.mw-parser-output .tooltip-dotted{border-bottom:1px dotted;cursor:help}

/* end https://en.wikipedia.org/ */

</style></div><div role="navigation" class="navbox authority-control" aria-labelledby="Authority_control_databases_frameless&#124;text-top&#124;10px&#124;alt=Edit_this_at_Wikidata&#124;link=https&#58;//www.wikidata.org/wiki/Q658255#identifiers&#124;class=noprint&#124;Edit_this_at_Wikidata895" style="padding:3px"><table class="nowraplinks hlist mw-collapsible autocollapse navbox-inner" style="border-spacing:0;background:transparent;color:inherit"><tbody><tr><th scope="col" class="navbox-title" colspan="2"><div id="Authority_control_databases_frameless&#124;text-top&#124;10px&#124;alt=Edit_this_at_Wikidata&#124;link=https&#58;//www.wikidata.org/wiki/Q658255#identifiers&#124;class=noprint&#124;Edit_this_at_Wikidata895" style="font-size:114%;margin:0 4em">Authority control databases </div></th></tr><tr><th scope="row" class="navbox-group" style="width:1%">National</th><td class="navbox-list-with-group navbox-list navbox-odd" style="width:100%;padding:0"><div style="padding:0 0.25em"><ul><li><span class="uid"><a rel="nofollow" class="external text" href="https://d-nb.info/gnd/4124317-1">Germany</a></span></li><li><span class="uid"><a rel="nofollow" class="external text" href="https://id.ndl.go.jp/auth/ndlna/00566141">Japan</a></span></li><li><span class="uid"><span class="rt-commentedText tooltip tooltip-dotted" title="dceřiné společnosti"><a rel="nofollow" class="external text" href="https://aleph.nkp.cz/F/?func=find-c&local_base=aut&ccl_term=ica=ph292476&CON_LNG=ENG">Czech Republic</a></span></span></li></ul></div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%">Other</th><td class="navbox-list-with-group navbox-list navbox-even" style="width:100%;padding:0"><div style="padding:0 0.25em"><ul><li><span class="uid"><a rel="nofollow" class="external text" href="https://lux.collections.yale.edu/view/concept/7fa2df8e-3f54-4393-b4a2-7c472b5e9420">Yale LUX</a></span></li></ul></div></td></tr></tbody></table></div></div><div><div class="zim-footer">

This article is issued from <a class="external text" title="Last edited on 2025-07-24" href="https://en.wikipedia.org/wiki/?title=Subsidiary&oldid=1302266077">Wikipedia</a>. The text is available under <a class="external text" href="https://creativecommons.org/licenses/by-sa/4.0/deed.en">Creative Commons Attribution-Share Alike 4.0</a> unless otherwise noted. Additional terms may apply for the media files.

</div>

</div></div>

</div>

</main>

</div>

</body></html>