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Subsidiary company


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.