Subsidiary definition: Copy, customize, and use instantly
Introduction
The term "Subsidiary" refers to an entity that is controlled by another entity, typically through ownership of a majority of its voting stock or by contractual rights. Subsidiaries often operate as separate legal entities while maintaining a financial and operational relationship with the parent company.
Below are various examples of how "Subsidiary" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Subsidiary" as an entity controlled by majority ownership
This definition ties "Subsidiary" to majority stock ownership.
"Subsidiary" means any entity in which a party owns, directly or indirectly, more than 50% of the voting stock or equity interests, or otherwise has the power to control its management or operations.
Definition of "Subsidiary" as linked to parent company oversight
This definition applies "Subsidiary" to control through governance.
"Subsidiary" refers to any entity that is under the direct or indirect control of a parent company, whether through voting rights, board representation, or contractual arrangements.
Definition of "Subsidiary" as a wholly owned entity
This definition ties "Subsidiary" to full ownership.
"Subsidiary" means any entity that is wholly owned by a party, directly or indirectly, and operates under the complete control of the parent company.
Definition of "Subsidiary" as recognized in consolidated financial statements
This definition applies "Subsidiary" to accounting standards.
"Subsidiary" refers to any entity included in the consolidated financial statements of a party under generally accepted accounting principles (GAAP) or international financial reporting standards (IFRS).
Definition of "Subsidiary" as inclusive of multiple tiers
This definition ties "Subsidiary" to indirect ownership.
"Subsidiary" means any entity directly owned by a party or indirectly owned through one or more intermediate subsidiaries.
Definition of "Subsidiary" as governed by contractual control
This definition applies "Subsidiary" to control through contracts.
"Subsidiary" refers to any entity whose management or operations are controlled by a party through contractual agreements, regardless of equity ownership.
Definition of "Subsidiary" as defined by voting rights control
This definition ties "Subsidiary" to voting power.
"Subsidiary" means any entity in which a party holds the majority of voting rights, enabling it to direct significant decisions and policies.
Definition of "Subsidiary" as specific to joint ventures
This definition applies "Subsidiary" to joint ownership.
"Subsidiary" refers to any jointly owned entity in which a party exercises significant influence or control, in accordance with the terms of the joint venture agreement.
Definition of "Subsidiary" as defined in regulatory filings
This definition ties "Subsidiary" to compliance requirements.
"Subsidiary" means any entity required to be disclosed as such in the regulatory filings or disclosures of a party under applicable laws.
Definition of "Subsidiary" as linked to operational control
This definition applies "Subsidiary" to business oversight.
"Subsidiary" refers to any entity whose daily operations are directed or overseen by a party, including through management appointments or operational mandates.
Definition of "Subsidiary" as linked to shared branding
This definition ties "Subsidiary" to brand association.
"Subsidiary" means any entity operating under the same brand, trade name, or trademark as the parent company, where the parent exercises control over its operations.
Definition of "Subsidiary" as recognized in anti-trust laws
This definition applies "Subsidiary" to legal classifications.
"Subsidiary" refers to any entity classified as such under applicable anti-trust or competition laws, based on the parent company’s level of control or influence.
Definition of "Subsidiary" as determined by economic dependence
This definition ties "Subsidiary" to financial reliance.
"Subsidiary" means any entity financially dependent on a parent company for its funding, operations, or strategic direction.
Definition of "Subsidiary" as governed by intercompany agreements
This definition applies "Subsidiary" to contractual frameworks.
"Subsidiary" refers to any entity subject to intercompany agreements that grant the parent company control over its policies, management, or financial decisions.
Definition of "Subsidiary" as linked to majority profit sharing
This definition ties "Subsidiary" to revenue allocation.
"Subsidiary" means any entity in which a parent company holds the majority interest in profits, dividends, or other financial returns.
Definition of "Subsidiary" as included in group liability structures
This definition applies "Subsidiary" to shared liabilities.
"Subsidiary" refers to any entity included in the liability structure of a parent company, such as through guarantees, indemnities, or joint obligations.
Definition of "Subsidiary" as subject to internal audits
This definition ties "Subsidiary" to oversight mechanisms.
"Subsidiary" means any entity subject to the parent company’s internal audit processes or financial controls, regardless of ownership percentage.
Definition of "Subsidiary" as inclusive of dormant entities
This definition applies "Subsidiary" to inactive operations.
"Subsidiary" refers to any entity owned or controlled by a parent company, including dormant or non-operational entities.
Definition of "Subsidiary" as recognized by international accounting standards
This definition ties "Subsidiary" to global reporting.
"Subsidiary" means any entity identified as such under international accounting standards, including IFRS or equivalent frameworks.
Definition of "Subsidiary" as connected through licensing arrangements
This definition applies "Subsidiary" to intellectual property.
"Subsidiary" refers to any entity licensed by the parent company to use its intellectual property, where the parent maintains control over the licensed operations.
Definition of "Subsidiary" as controlled through equity derivatives
This definition ties "Subsidiary" to derivative-based control.
"Subsidiary" means any entity controlled by a parent company through ownership of equity derivatives, such as options, warrants, or convertible securities.
Definition of "Subsidiary" as applicable to non-profit organizations
This definition applies "Subsidiary" to charitable entities.
"Subsidiary" refers to any non-profit entity operated or overseen by a parent organization, regardless of ownership or financial dependency.
Definition of "Subsidiary" as linked to cross-border operations
This definition ties "Subsidiary" to international entities.
"Subsidiary" means any entity established in a foreign jurisdiction but controlled directly or indirectly by the parent company.
Definition of "Subsidiary" as subject to tax consolidation
This definition applies "Subsidiary" to fiscal arrangements.
"Subsidiary" refers to any entity included in the parent company’s tax group or consolidation for reporting and compliance purposes.
Definition of "Subsidiary" as governed by a shareholder agreement
This definition ties "Subsidiary" to governance through shareholder agreements.
"Subsidiary" means any entity where control is established or maintained through the terms of a shareholder or similar agreement.
Definition of "Subsidiary" as participating in intercompany loans
This definition applies "Subsidiary" to financial dependencies.
"Subsidiary" refers to any entity that regularly participates in intercompany loan agreements or financial support arrangements with the parent company.
Definition of "Subsidiary" as determined by operational integration
This definition ties "Subsidiary" to shared systems.
"Subsidiary" means any entity whose operations are integrated with the parent company through shared systems, processes, or resources.
Definition of "Subsidiary" as subject to parent company indemnities
This definition applies "Subsidiary" to indemnification agreements.
"Subsidiary" refers to any entity covered under indemnity provisions or guarantees provided by the parent company in legal or financial arrangements.
Definition of "Subsidiary" as recognized under corporate group policies
This definition ties "Subsidiary" to internal governance.
"Subsidiary" means any entity governed by the corporate policies, procedures, or codes of conduct issued by the parent company.
Definition of "Subsidiary" as linked to franchising agreements
This definition applies "Subsidiary" to franchise models.
"Subsidiary" refers to any entity operating under a franchise agreement where the parent company retains significant control over branding, operations, or financial reporting.
Definition of "Subsidiary" as subject to compliance oversight
This definition applies "Subsidiary" to regulatory monitoring.
"Subsidiary" refers to any entity monitored or managed for compliance purposes by the parent company, including adherence to internal and external regulatory standards.
Definition of "Subsidiary" as part of vertically integrated operations
This definition ties "Subsidiary" to supply chain structures.
"Subsidiary" means any entity integrated into the parent company’s vertical supply chain, operating as a controlled step in production or distribution processes.
Definition of "Subsidiary" as operating under exclusive licensing
This definition applies "Subsidiary" to intellectual property relationships.
"Subsidiary" refers to any entity operating exclusively under licenses granted by the parent company, where control is maintained through licensing terms.
Definition of "Subsidiary" as linked by shared debt obligations
This definition ties "Subsidiary" to financial liabilities.
"Subsidiary" means any entity jointly liable for debt obligations or financial instruments issued by or with the parent company.
Definition of "Subsidiary" as defined in mergers and acquisitions agreements
This definition applies "Subsidiary" to transitional control.
"Subsidiary" refers to any entity acquired or merged with the parent company, where control is exercised as per the terms of the merger or acquisition agreement.
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.