A parent company is a company that owns enough voting stock in another firm to control management and operations by influencing or electing its board of directors; the second company being deemed to a subsidiary of the parent company. Generally a company is a form of Business organization. The precise definition varies A voting share (also called common stock or ordinary share) is a share of Stock giving the Stockholder the right to vote on matters A subsidiary, in business matters is an entity that is controlled by a bigger and more powerful entity The definition of a parent company differs from jurisdiction to jurisdiction, with the definition normally being defined by way of laws dealing with companies in that jurisdiction. In Law, jurisdiction (from the Latin ius iuris meaning "law" and dicere meaning "to speak" is the practical Authority Companies law (or the law of business associations) is the field of Law concerning business and other organizations

Contents 1 Definitions from around the world 1.1 Australia 1.2 Singapore 2 References

Definitions from around the world

Australia

The parent company-subsidiary company relationship is defined by Part 1. 2, Division 6, Section 46 of the Corporations Act 2001 (Cth), which states^[1]:

A body corporate (in this section called the first body ) is a subsidiary of another body corporate if, and only if:

(a) the other body:

(i) controls the composition of the first body's board; or

(ii) is in a position to cast, or control the casting of, more than one-half of the maximum number of votes that might be cast at a general meeting of the first body; or

(iii) holds more than one-half of the issued share capital of the first body (excluding any part of that issued share capital that carries no right to participate beyond a specified amount in a distribution of either profits or capital); or

(b) the first body is a subsidiary of a subsidiary of the other body. The Corporations Act 2001 (Cth, sometimes referred to just as the Corporations Act (or informally as the 'Corps' Act is an act of the Commonwealth of Australia that sets out In English Law (and as a result throughout the Commonwealth Realms) body corporate is the legal term for a Corporation. A subsidiary, in business matters is an entity that is controlled by a bigger and more powerful entity Participants To the extent that persons in the invited category are clearly identifiable - as for example registered voters of a particular political party or residents of a certain

Singapore

The parent company-subsidiary company relationship is defined by Part 1, Section 5, Subsection 1 of the Companies Act, which states^[2]:

5. —(1) For the purposes of this Act, a corporation shall, subject to subsection (3), be deemed to be a subsidiary of another corporation, if —

(a) that other corporation —

(i) controls the composition of the board of directors of the first-mentioned corporation;

(ii) controls more than half of the voting power of the first-mentioned corporation; or

(iii) holds more than half of the issued share capital of the first-mentioned corporation (excluding any part thereof which consists of preference shares and treasury shares); or

(b) the first-mentioned corporation is a subsidiary of any corporation which is that other corporation’s subsidiary.

References

© 2009 citizendia.org; parts available under the terms of GNU Free Documentation License, from http://en.wikipedia.org
Dapyx Software network: MP3 Explorer | Ebook Manager | Zenithic