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Research draft

subsidiary company

vr.tr.subsidiary-company · SOC.ORG

Let an agent explain subsidiaries and their legal and accounting treatment, identify specific subsidiaries and parents with sources, describe why groups use subsidiaries, and support corporate structure questions in general terms.

Thing Registry Society, people and institutions

Research draft, second pass

A second pass drafted this model: the structure a model of this thing needs, and what is known about it in the world. The line under this one says how the second half was obtained - researched against sources, or recalled without web access, in which case nothing here was read anywhere and every claim is a lead to verify. Unreviewed either way.

written by Claude from model knowledge without web access - no source was read, every claim is a lead to verify

Researched by: Claude

Purpose and description

Let an agent explain subsidiaries and their legal and accounting treatment, identify specific subsidiaries and parents with sources, describe why groups use subsidiaries, and support corporate structure questions in general terms.

A company controlled by another company, the parent, through ownership of a majority of shares or voting rights, including wholly and partly owned subsidiaries, foreign subsidiaries, indirect subsidiaries held through other subsidiaries and non-operating subsidiaries, such as national units of multinational groups; subsidiaries are separate legal entities with their own liabilities and are consolidated in group accounts.

What it is for: Companies controlled by parent companies.

It can be explain subsidiary structures; identify subsidiaries and parents; describe legal and accounting treatment; explain why groups use subsidiaries.

Distinguishing features

Parent control

Separate legal personality

Consolidated accounts

Group structures

What it looks like

Not physical; corporate entities in group structures.

How it is recognised

Controlled by a parent company

Separate legal entity

A branch is not a separate legal entity; an associate is not controlled

Related models

is a kind of - category

company

is a kind of - category

organizational unit

is related to - other business structures

partnership

is related to - imprints as subsidiaries

publishing house

In practice

Families and kinds

wholly owned subsidiaries

partly owned subsidiaries

foreign subsidiaries

indirect subsidiaries

non-operating and holding subsidiaries

Standards and regulation

Company law on control and group structures

Consolidation rules in accounting standards

Tax and transfer pricing rules

Failure modes and hazards

Liability shielding abuses

Opaque ownership

Agents giving legal or tax advice

Also called

Nestlé Indianonoperating subsidiaryNestle EspañaAguas Danone SAforeign subsidiary companyindirect subsidiaryconsolidated subsidiaryVolkswagen (China) Investment Co., Ltd.ABC Heinz IndonesiaYamaha DrumsBorden Dairy CompanyCarr'swholly owned subsidiaryServicios Lógisticos Ferroviarios S.A.Merv Griffin EnterprisesMitchell & Nessoperating subsidiaryScott's Porage OatsSnyder's-LanceAvalon HillTouchstone Television

Where this came from

wikidata · CC0 1.0

Source repository Registry entry point

Drafted structure

Bundle to layer to finding to question, as the second pass will find it: 4 bundles · 8 layers · 8 findings · 16 questions.

Understand What a subsidiary is.

Concepts.

Definition

Definition and control.

Definition

Definition.

  1. What makes a company a subsidiary, and how do wholly owned, partly owned, indirect and foreign subsidiaries differ? definition
  2. How does a subsidiary differ from a branch, division or associate? definition

Specific

A specific subsidiary.

Specific

Specific subsidiary.

  1. Who is the parent of this company, and what does it do, according to company registers and reports? provenance
  2. Which entry fits it? action
Why Why groups use subsidiaries.

Rationale.

Reasons

Reasons.

Reasons

Reasons.

  1. Why do companies create subsidiaries, such as for liability, regulation, tax, local operations and acquisitions? definition
  2. What are non-operating subsidiaries for? definition

Risks

Risks and abuses.

Risks

Risks.

  1. What are documented risks and abuses of subsidiary structures, and how do laws address them? provenance
  2. What is piercing the corporate veil? definition
Rules Law and accounting.

Regulation.

Law

Company law.

Law

Company law.

  1. How does company law treat subsidiaries, control and group liability here? provenance
  2. Is the user seeking legal advice on a specific structure? boundary

Accounting

Consolidation.

Accounting

Accounting.

  1. How are subsidiaries consolidated in group accounts, and what disclosures are required? provenance
  2. How do transfer pricing rules apply? provenance
Learn Research and teaching.

Context.

Research

Researching ownership.

Research

Research.

  1. How can corporate ownership chains be researched through registers and beneficial ownership data? action
  2. Which registers are available here? provenance

Teach

Teaching.

Teach

Teaching.

  1. How can group structures be taught in company law and accounting? action
  2. Which misconceptions arise? provenance

What the second pass must settle

  • Should each corporate group be a separate entry?
  • How should company registers be linked?
  • How should consolidation rules be linked?
Draft as JSON