A subsidiary can only have one parent company; Otherwise, the subsidiary is in fact a joint agreement (joint venture or joint venture) over which two or more parties have joint control (IFRS 11, paragraph 4). Common control is the contractual sharing of control of an agreement that exists only when decisions concerning the activities concerned require the unanimous agreement of the parties who share control over it. Control may be directly (for example.B. a parent company directly controls the subsidiary of the first animal) or indirectly (z.B. an ultimate parent company indirectly controls the second and lower level of the subsidiaries through first-tier subsidiaries). A subsidiary, subsidiary or subsidiary is a company owned or controlled by another company called parent, parent or holding company.   The subsidiary may be a limited liability company, company or corporation. In some cases, it is a public or public enterprise. The 31st recital of the 2013/34/EU Directive stipulates that control should be based on the majority of voting rights, but control may exist even if there are agreements with co-shareholders or members.
In certain circumstances, control may be exercised effectively where the parent company owns a minority or none of the shares in the subsidiary. In the U.S. rail industry, an operating subsidiary is a subsidiary that is a subsidiary, but operates with its own identity, locomotives and rolling stock. On the other hand, a non-operating subsidiary would exist only on paper (i.e. stocks, bonds, constituent assets) and would use the identity of the parent company. The Companies Act 2006 contains two definitions: one as „subsidiaries” and the other as a subsidiary. The broader definition of „subsidiary” applies to the accounting rules of the „Companies Act 2006,” while the definition of „subsidiary” is used for general purposes.  Under Law 1159, a company is a „subsidiary” of another company, its „holding company,” if that other company: the subsidiaries are separate, separate legal persons for the purposes of taxation, regulation and liability. This is why they differ from divisions that are fully integrated into the main business and do not differ, legally or otherwise, from the main enterprise.  In other words, a subsidiary may take legal action and be subpoenaed separately from its parent company, and its obligations are generally not the obligations of its parent company. However, creditors of an insolvent subsidiary can obtain a judgment against the parent company if they can penetrate the corporate veil and prove that the mother and subsidiary are only alter egos of each other, so that the copyrights, trademarks and patents remain with the subsidiary until the parent company closes the subsidiary. A parent company should not be the largest or most „powerful” entity; The parent company may be smaller than a subsidiary such as DanJaq, a tightly managed family business that controls Eon Productions, the large group that runs the James Bond franchise.
Conversely, the parent company may be larger than some or all of its subsidiaries (if it has more than one), because the relationship is defined by the control of the ownership shares, not by the number of employees. The parent company and the subsidiary are not required to operate on the same sites or to carry out the same activities.