Unrestricted Subsidiary definition: Copy, customize, and use instantly
Introduction
The term "Unrestricted Subsidiary" refers to a subsidiary company that operates outside the restrictions and covenants imposed on the parent company by its agreements. This term is often used in financial or corporate contexts to differentiate between entities with more operational freedom and those with certain limitations. Defining it clearly ensures that the relationships between the parent and subsidiary, as well as their respective rights and obligations, are well understood.
Below are various examples of how "Unrestricted Subsidiary" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Unrestricted Subsidiary" in financial agreements
This definition ties "Unrestricted Subsidiary" to the financial structure.
"Unrestricted Subsidiary" refers to any subsidiary of the parent company that is not subject to the same financial covenants, restrictions, or obligations as the parent company or other restricted subsidiaries.
Definition of "Unrestricted Subsidiary" in debt covenants
This definition connects "Unrestricted Subsidiary" to borrowing restrictions.
"Unrestricted Subsidiary" means any subsidiary of the Borrower that is not bound by the terms of the debt agreement, allowing it more freedom in its operations and financial activities.
Definition of "Unrestricted Subsidiary" in M&A agreements
This definition links "Unrestricted Subsidiary" to merger and acquisition scenarios.
"Unrestricted Subsidiary" refers to any subsidiary that is not subject to the restrictions imposed by the merger and acquisition agreement and can operate independently in terms of its financial and operational decisions.
Definition of "Unrestricted Subsidiary" in corporate governance
This definition ties "Unrestricted Subsidiary" to governance structure.
"Unrestricted Subsidiary" means a subsidiary that has been designated as outside the governance and restrictions imposed by the parent company's articles of incorporation, enabling it to pursue business opportunities without parental oversight.
Definition of "Unrestricted Subsidiary" in joint venture agreements
This definition connects "Unrestricted Subsidiary" to joint ventures.
"Unrestricted Subsidiary" refers to a subsidiary that operates with full autonomy, separate from the restrictions or obligations in joint venture agreements signed by the parent company.
Definition of "Unrestricted Subsidiary" in investment agreements
This definition links "Unrestricted Subsidiary" to investment considerations.
"Unrestricted Subsidiary" means any subsidiary that operates outside the restrictions imposed by investment agreements, including restrictions on borrowing, asset sales, or financial reporting.
Definition of "Unrestricted Subsidiary" in tax-related contexts
This definition ties "Unrestricted Subsidiary" to tax obligations.
"Unrestricted Subsidiary" refers to a subsidiary whose operations are not subject to the consolidated tax obligations or restrictions imposed on the parent company or its other subsidiaries.
Definition of "Unrestricted Subsidiary" in debt restructuring
This definition connects "Unrestricted Subsidiary" to restructuring terms.
"Unrestricted Subsidiary" means a subsidiary that is not bound by the covenants of the debt restructuring agreement, providing flexibility in its operations and financial decisions.
Definition of "Unrestricted Subsidiary" in equity agreements
This definition links "Unrestricted Subsidiary" to equity financing terms.
"Unrestricted Subsidiary" refers to a subsidiary that can issue equity or take on investments without being constrained by the covenants of the parent company's existing equity agreements.
Definition of "Unrestricted Subsidiary" in financial reporting
This definition ties "Unrestricted Subsidiary" to financial statements.
"Unrestricted Subsidiary" refers to a subsidiary whose financial results are reported separately from the consolidated financial statements of the parent company, as it operates with fewer restrictions.
Definition of "Unrestricted Subsidiary" in operational agreements
This definition connects "Unrestricted Subsidiary" to operational flexibility.
"Unrestricted Subsidiary" means any subsidiary of the company that is exempt from the operational restrictions or covenants typically applied to other subsidiaries, allowing it more autonomy in decision-making.
Definition of "Unrestricted Subsidiary" in corporate structuring
This definition links "Unrestricted Subsidiary" to structural flexibility.
"Unrestricted Subsidiary" refers to a company that has been designated as independent from the restrictive covenants and operational limitations placed on other subsidiaries in the corporate group.
Definition of "Unrestricted Subsidiary" in credit agreements
This definition ties "Unrestricted Subsidiary" to credit terms.
"Unrestricted Subsidiary" means a subsidiary that is not subject to the limitations, financial covenants, or other conditions imposed under the credit agreement governing the parent company's operations.
Definition of "Unrestricted Subsidiary" in capital structure
This definition connects "Unrestricted Subsidiary" to the capital structure.
"Unrestricted Subsidiary" refers to a subsidiary that is not governed by the same capital structure requirements, enabling it to raise funds or take on liabilities independently from the parent company.
Definition of "Unrestricted Subsidiary" in affiliate transactions
This definition links "Unrestricted Subsidiary" to intercompany dealings.
"Unrestricted Subsidiary" refers to a subsidiary that can engage in transactions with affiliates or related companies without being subject to the same restrictions as the parent company or its restricted subsidiaries.
Definition of "Unrestricted Subsidiary" in consolidation
This definition ties "Unrestricted Subsidiary" to consolidation practices.
"Unrestricted Subsidiary" refers to a subsidiary that is not included in the consolidation process for accounting purposes due to its operational and financial autonomy.
Definition of "Unrestricted Subsidiary" in debt financing
This definition connects "Unrestricted Subsidiary" to debt agreements.
"Unrestricted Subsidiary" means a subsidiary that is exempt from the restrictions or obligations imposed on the parent company in relation to debt financing, enabling it to act freely in securing loans or issuing bonds.
Definition of "Unrestricted Subsidiary" in business combinations
This definition links "Unrestricted Subsidiary" to mergers and acquisitions.
"Unrestricted Subsidiary" refers to a subsidiary that retains its independent operational and financial status during business combinations, such as mergers or acquisitions.
Definition of "Unrestricted Subsidiary" in equity issuance
This definition ties "Unrestricted Subsidiary" to equity deals.
"Unrestricted Subsidiary" means a subsidiary that can issue equity or participate in capital raising activities without being bound by the terms and conditions imposed on other subsidiaries of the parent company.
Definition of "Unrestricted Subsidiary" in debt agreements
This definition connects "Unrestricted Subsidiary" to loan covenants.
"Unrestricted Subsidiary" refers to a subsidiary that is free from the covenants, restrictions, and conditions imposed under the parent company's debt agreements.
Definition of "Unrestricted Subsidiary" in affiliate investments
This definition links "Unrestricted Subsidiary" to investment opportunities.
"Unrestricted Subsidiary" means a subsidiary that is allowed to engage in investments or other financial dealings independently of the parent company's restrictions.
Definition of "Unrestricted Subsidiary" in financial independence
This definition ties "Unrestricted Subsidiary" to financial autonomy.
"Unrestricted Subsidiary" refers to a subsidiary that enjoys financial independence, free from the constraints imposed by the parent company's financial structure or agreements.
Definition of "Unrestricted Subsidiary" in governance and control
This definition connects "Unrestricted Subsidiary" to decision-making processes.
"Unrestricted Subsidiary" means any subsidiary of the parent company that is not subject to the governance, control, or decision-making restrictions applied to other subsidiaries within the corporate group.
Definition of "Unrestricted Subsidiary" in reporting obligations
This definition links "Unrestricted Subsidiary" to reporting rules.
"Unrestricted Subsidiary" refers to a subsidiary that is not required to follow the same reporting obligations or financial disclosures required of the parent company or its other subsidiaries.
Definition of "Unrestricted Subsidiary" in joint venture capital
This definition ties "Unrestricted Subsidiary" to joint ventures.
"Unrestricted Subsidiary" refers to a subsidiary that is allowed to engage in joint venture partnerships or investments without being bound by the restrictions of the parent company.
Definition of "Unrestricted Subsidiary" in capital expenditure
This definition connects "Unrestricted Subsidiary" to spending flexibility.
"Unrestricted Subsidiary" means a subsidiary that has the freedom to make capital expenditures, investments, or acquisitions without being constrained by the parent company's restrictions.
Definition of "Unrestricted Subsidiary" in business ventures
This definition links "Unrestricted Subsidiary" to new ventures.
"Unrestricted Subsidiary" refers to a subsidiary that has the flexibility to engage in business ventures, acquisitions, or new projects without the limitations of the parent company’s operating agreement.
Definition of "Unrestricted Subsidiary" in financial transactions
This definition ties "Unrestricted Subsidiary" to specific financial transactions or obligations.
"Unrestricted Subsidiary" means a subsidiary that is not subject to certain financial covenants or restrictions under the terms of the agreement, allowing it to operate freely in financial transactions.
Definition of "Unrestricted Subsidiary" in corporate structure
This definition connects "Unrestricted Subsidiary" to corporate organizational structures.
"Unrestricted Subsidiary" refers to a subsidiary that is not bound by the restrictions or controls of the parent company’s debt agreements or governance policies, providing greater operational flexibility.
Definition of "Unrestricted Subsidiary" in investment context
This definition links "Unrestricted Subsidiary" to investment-related scenarios.
"Unrestricted Subsidiary" means a subsidiary that can independently issue debt or take on obligations without the approval or oversight of the parent company, providing investment opportunities and autonomy in its operations.
Definition of "Unrestricted Subsidiary" in tax planning
This definition ties "Unrestricted Subsidiary" to tax considerations.
"Unrestricted Subsidiary" refers to a subsidiary that is structured in such a way that it is not consolidated for tax reporting purposes, offering potential tax planning advantages for the parent company.
Definition of "Unrestricted Subsidiary" in legal compliance
This definition connects "Unrestricted Subsidiary" to legal or regulatory compliance.
"Unrestricted Subsidiary" means a subsidiary that is not subject to certain legal or regulatory restrictions, allowing it to engage in activities or transactions that may otherwise be limited for the parent company or other subsidiaries.
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.