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Subsidiary Company

3 min read

Quick Summary

Subsidiary Company operates under the control of a holding company.

A company is a subsidiary if another company controls: 1) more than 50% of voting power, or 2) composition of its board. Wholly Owned Subsidiary means 100% shareholding by the holding company.

Key Points

  • Controlled by holding company
  • >50% voting power
  • Board composition controlled
  • WOS = 100% owned
  • Separate legal entity