Subsidiary management
Introduction
A parent company, also called parent company or parent company, is a company that has one or more dependent companies or subsidiaries, that is, it owns at least 50% of the capital of other companies. All of these companies is what is known as a group of companies. The parent company usually provides management, administration and control through one or more persons, directors or managers, who have been appointed by the management of the parent company.
The activity of the parent company may sometimes be limited to capital management, or they only seek the consolidation and management of multiple interests in very varied companies and economic activities, or as it is more specifically called, "exploitation." In other cases, the parent company is directly involved in the work and objectives of the dependent companies.
An example of a parent company is EADS, Mitsubishi Fuso trucks at Airbus manufacturing appointment at Daimler AG aviation. The telecommunications sector can also be a source of example Iliad is the parent company of its subsidiary Libre as Orange France is a subsidiary of France Telecom.
Operation
Ultimately the parent company establishes a partnership in which it possesses sufficient voting power in another company to have control of the management and influence operations or the election of its board of directors; The second company is considered as a sub-company or subsidiary company of the parent company. The definition of a parent company differs by jurisdiction, with the definition usually being defined by the laws dealing with companies in that jurisdiction.
Comparative legislation
Australia
The subsidiary-parent company relationship is defined by Part 1.2 of Division 6, Section 46 of the Corporations Act 2001 (Cth), which states:
A legal entity (in this section called the first body) is a subsidiary of another legal entity, if and only if:
(a) from another institution:
(i) controls the composition of the board of directors of the first body; or