Material Subsidiary definition: Copy, customize, and use instantly
Introduction
The term "Material Subsidiary" refers to a subsidiary company whose financial condition or operations are significant enough to affect the parent company’s financial performance or decision-making. This term is often used in financial agreements and corporate governance to define subsidiaries whose impact on the parent company is deemed substantial.
Below are various examples of how "Material Subsidiary" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Material Subsidiary" as a financial-impacting subsidiary
This definition ties "Material Subsidiary" to financial influence.
"Material Subsidiary" means a subsidiary whose assets, liabilities, revenues, or overall financial condition, when considered individually or collectively, are of sufficient size or importance to materially affect the consolidated financial statements of the parent company.
Definition of "Material Subsidiary" as a significant operational subsidiary
This definition connects "Material Subsidiary" to operational significance.
"Material Subsidiary" refers to a subsidiary that plays a critical role in the operational activities of the parent company, including the contribution to revenue, key product lines, or essential services that the parent company relies on.
Definition of "Material Subsidiary" as a subsidiary with major decision-making impact
This definition links "Material Subsidiary" to governance.
"Material Subsidiary" means a subsidiary whose operations, governance, or strategic direction have a significant influence on the decision-making and policies of the parent company, including its ability to shape corporate objectives.
Definition of "Material Subsidiary" as a key subsidiary under financial covenants
This definition ties "Material Subsidiary" to financial covenants.
"Material Subsidiary" refers to any subsidiary that is subject to the financial covenants set forth in the parent company's financing agreements, as the financial health of the subsidiary directly impacts the parent company's ability to meet its obligations.
Definition of "Material Subsidiary" as a subsidiary affecting consolidated earnings
This definition connects "Material Subsidiary" to earnings impact.
"Material Subsidiary" means a subsidiary that contributes a material portion of the consolidated earnings of the parent company, with its financial performance significantly influencing the overall profitability of the group.
Definition of "Material Subsidiary" as a subsidiary with control over assets
This definition links "Material Subsidiary" to asset control.
"Material Subsidiary" refers to a subsidiary that holds significant assets, the ownership or control of which is critical to the parent company’s overall business strategy or financial stability.
Definition of "Material Subsidiary" as a major tax contributor
This definition ties "Material Subsidiary" to tax implications.
"Material Subsidiary" means a subsidiary that significantly contributes to the overall tax liability or tax position of the parent company, either through its profits, deductions, or other financial transactions.
Definition of "Material Subsidiary" as an entity with significant liabilities
This definition connects "Material Subsidiary" to liabilities.
"Material Subsidiary" refers to a subsidiary whose liabilities, including but not limited to debt, contingent liabilities, or other obligations, are sufficiently significant to impact the overall financial health and risk profile of the parent company.
Definition of "Material Subsidiary" as a strategically important subsidiary
This definition links "Material Subsidiary" to strategic importance.
"Material Subsidiary" means a subsidiary that is considered essential to the parent company's long-term strategic goals, whether through market presence, competitive advantage, or control over critical technologies or intellectual property.
Definition of "Material Subsidiary" as a major customer or supplier
This definition ties "Material Subsidiary" to business relationships.
"Material Subsidiary" refers to a subsidiary that is a major customer or supplier to the parent company, with its business relationships affecting the financial and operational viability of the group.
Definition of "Material Subsidiary" as a subsidiary with material equity interests
This definition connects "Material Subsidiary" to equity stakes.
"Material Subsidiary" means a subsidiary in which the parent company holds a material equity interest, typically represented as a significant percentage of the subsidiary’s total outstanding shares, impacting the parent’s financial reporting and ownership structure.
Definition of "Material Subsidiary" as a subsidiary impacting regulatory compliance
This definition links "Material Subsidiary" to regulatory matters.
"Material Subsidiary" refers to a subsidiary whose actions or operations are critical to ensuring the parent company’s compliance with relevant laws, regulations, or industry standards, particularly in areas such as securities, antitrust, or environmental compliance.
Definition of "Material Subsidiary" as a business unit with a material market share
This definition ties "Material Subsidiary" to market influence.
"Material Subsidiary" means a subsidiary that holds a material market share in its respective industry, such that its competitive performance has a direct impact on the overall market position and competitive strength of the parent company.
Definition of "Material Subsidiary" as a subsidiary with a significant geographic footprint
This definition connects "Material Subsidiary" to geographic importance.
"Material Subsidiary" refers to a subsidiary that operates in a geographic region crucial to the parent company’s global strategy, with a significant market presence or operational infrastructure in that region.
Definition of "Material Subsidiary" as a subsidiary with a significant impact on brand or reputation
This definition links "Material Subsidiary" to brand value.
"Material Subsidiary" means a subsidiary whose brand, reputation, or market image is closely tied to the overall reputation and perception of the parent company, influencing the parent’s public and consumer relations.
Definition of "Material Subsidiary" as a subsidiary affecting consolidated financial ratios
This definition ties "Material Subsidiary" to financial performance.
"Material Subsidiary" refers to a subsidiary whose performance significantly impacts the key financial ratios of the parent company, including profitability, leverage, or liquidity, in a manner that materially affects the parent’s financial position.
Definition of "Material Subsidiary" as a subsidiary with a material impact on cash flow
This definition connects "Material Subsidiary" to liquidity.
"Material Subsidiary" means a subsidiary that generates or consumes a significant portion of the parent company’s consolidated cash flow, whether through revenue generation, capital expenditures, or financing activities.
Definition of "Material Subsidiary" as a subsidiary with a material impact on corporate governance
This definition links "Material Subsidiary" to governance.
"Material Subsidiary" refers to a subsidiary whose management, policies, or actions are integral to the corporate governance of the parent company, including board composition, executive compensation, or decision-making processes.
Definition of "Material Subsidiary" as a subsidiary whose activities require disclosure
This definition ties "Material Subsidiary" to financial disclosure.
"Material Subsidiary" means a subsidiary whose activities or financial status must be disclosed in accordance with applicable securities laws or corporate governance standards, due to its material impact on the parent company.
Definition of "Material Subsidiary" as a subsidiary that affects the parent company's equity
This definition ties "Material Subsidiary" to the parent company’s equity structure.
"Material Subsidiary" means a subsidiary whose financial position and operations materially influence the equity ownership and control of the parent company, either through capital raising, investments, or significant changes in value.
Definition of "Material Subsidiary" as a subsidiary impacting profitability
This definition connects "Material Subsidiary" to the parent company’s profitability.
"Material Subsidiary" refers to a subsidiary whose revenues and expenses significantly affect the parent company’s profitability, accounting for a large share of its consolidated earnings before tax (EBIT).
Definition of "Material Subsidiary" as a subsidiary involved in mergers and acquisitions
This definition links "Material Subsidiary" to M&A activity.
"Material Subsidiary" means a subsidiary that plays a key role in mergers or acquisitions undertaken by the parent company, either by being a target, acquirer, or by holding significant assets or liabilities.
Definition of "Material Subsidiary" as a subsidiary central to the business model
This definition ties "Material Subsidiary" to core business functions.
"Material Subsidiary" refers to a subsidiary that is integral to the business model of the parent company, providing essential products, services, or technologies that define the parent’s competitive advantage.
Definition of "Material Subsidiary" as a subsidiary influencing compliance reporting
This definition connects "Material Subsidiary" to legal and regulatory compliance.
"Material Subsidiary" means a subsidiary whose activities or structure require the parent company to disclose significant information in compliance with securities laws or other regulatory frameworks.
Definition of "Material Subsidiary" as a subsidiary with influence over board decisions
This definition links "Material Subsidiary" to corporate governance.
"Material Subsidiary" refers to a subsidiary whose leadership, operations, or decisions directly influence the composition or actions of the parent company’s board of directors.
Definition of "Material Subsidiary" as a subsidiary crucial to market share
This definition ties "Material Subsidiary" to competitive positioning.
"Material Subsidiary" means a subsidiary that holds a significant share of the market, with its performance playing a key role in the parent company’s overall market position and competitive strategy.
Definition of "Material Subsidiary" as a subsidiary with significant intellectual property holdings
This definition connects "Material Subsidiary" to intellectual property.
"Material Subsidiary" refers to a subsidiary that holds or controls valuable intellectual property, patents, trademarks, or other intangible assets that materially impact the parent company’s innovation and market competitiveness.
Definition of "Material Subsidiary" as a subsidiary essential to supply chain operations
This definition links "Material Subsidiary" to supply chain function.
"Material Subsidiary" means a subsidiary that plays a critical role in the parent company’s supply chain, whether through manufacturing, distribution, or procurement of key raw materials or products.
Definition of "Material Subsidiary" as a subsidiary contributing to the parent company’s cash flow
This definition ties "Material Subsidiary" to liquidity management.
"Material Subsidiary" refers to a subsidiary that contributes a significant portion of the parent company’s consolidated cash flow, either through revenue generation or by providing financing and capital resources.
Definition of "Material Subsidiary" as a subsidiary critical to product development
This definition connects "Material Subsidiary" to R&D and product development.
"Material Subsidiary" means a subsidiary that is responsible for research and development, production, or technological advancements that are crucial to the parent company’s core products or services.
Definition of "Material Subsidiary" as a subsidiary engaged in international operations
This definition links "Material Subsidiary" to global operations.
"Material Subsidiary" refers to a subsidiary that operates in international markets, with its global presence contributing significantly to the parent company’s overall strategy, revenue generation, and international expansion.
Definition of "Material Subsidiary" as a subsidiary with significant financial obligations
This definition ties "Material Subsidiary" to debt or financial responsibility.
"Material Subsidiary" means a subsidiary with significant financial obligations, including debts, loans, or guarantees that may impact the financial standing or creditworthiness of the parent company.
Definition of "Material Subsidiary" as a subsidiary with influence on key business operations
This definition connects "Material Subsidiary" to operational control.
"Material Subsidiary" refers to a subsidiary that influences key operational processes such as production, customer service, or distribution, having a direct effect on the efficiency and profitability of the parent company.
Definition of "Material Subsidiary" as a subsidiary participating in high-risk ventures
This definition links "Material Subsidiary" to risk management.
"Material Subsidiary" means a subsidiary involved in high-risk operations, such as speculative investments, unproven technologies, or uncertain markets, that could materially affect the parent company’s financial risk profile.
Definition of "Material Subsidiary" as a subsidiary involved in major strategic decisions
This definition ties "Material Subsidiary" to strategic planning.
"Material Subsidiary" refers to a subsidiary whose strategic decisions, including acquisitions, investments, and partnerships, have a major impact on the long-term direction of the parent company.
Definition of "Material Subsidiary" as a subsidiary with significant public visibility
This definition connects "Material Subsidiary" to public relations.
"Material Subsidiary" means a subsidiary that is publicly recognized or has significant media visibility, influencing the public perception and reputation of the parent company.
Definition of "Material Subsidiary" as a subsidiary with substantial regulatory oversight
This definition links "Material Subsidiary" to compliance and oversight.
"Material Subsidiary" refers to a subsidiary that is subject to significant regulatory oversight, such as financial institutions, healthcare entities, or companies in highly regulated industries, with its compliance status impacting the parent company.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.