Subsidiary
A company controlled (typically owned more than 50%) by another company, the parent, often used to isolate liabilities or operate in specific jurisdictions.
Encyclopedia entry: Subsidiary
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subsidiary
A subsidiary is an entity (e.g., a corporation ) in which another entity (known as the parent or holding company ) has a controlling share . Although the subsidiary operates as a separate legal entity, the parent company can influence its policies , management, and operations. Subsidiaries are often established to manage specific business operations, enter new markets, or mitigate risks associated with different lines of business.
[Last reviewed in June of 2024 by the Wex Definitions Team
]
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Encyclopedia content from Cornell LII Wex (CC-BY-NC-SA 2.5).
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This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.