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Home » Banking » Banking Law and Regulation » Subsidiary

Subsidiary


What Does Subsidiary Mean?

A company whose voting stock is more than 50% controlled by another company, usually referred to as the parent company.

As long as the parent company has more than 50% of the voting stock in the subsidiary, it has control. In the case of a foreign subsidiary, the company under which the subsidiary is incorporated must adhere to the laws of the country in which the subsidiary operates, although the parent company still carries the foreign subsidiary's financials on its books (consolidated financial statements).


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