Define: Parent Company

UK Accounting Glossary

Definition: Parent Company


Quick Summary of Parent Company


Company which controls one or more subsidiaries in a group.



What is the dictionary definition of Parent Company?

Dictionary Definition


parent company is a company that owns enough voting stock in another firm to control management and operation by influencing or electing its board of directors. The (child) company is deemed a subsidiary of the parent company.


Full Definition of Parent Company




Examples of Parent Company in a sentence


Each unit including the parent company has its own, localised management team.

Their parent company, as it now exists, was formed through a series of mergers and acquisitions in the late 1950’s.

The parent company will also discard the Blockbusters name for an undisclosed moniker later this year.

Blockbuster Inc’s parent company, Viacom, owns Mount Pictures.

parent company has a 40% interest in an associated company.

The parent company has issued a legally-binding letter of demands to its subsidiary.

It was destined to be popular, but not quite in the way its parent company intended.

Cultural difficulties highlight another issue which may arise if a parent company is based abroad.


Parent Company FAQ's


What is the role of a parent company?

parent company is a company that has a controlling interest in another company, giving it control of its operations. Parent companies are formed when they spin-off or carve out subsidiaries, or through an acquisition or merger.

Can you sue the parent company of a subsidiary?

parent company can become liable for its subsidiary and the “corporate veil”, which would usually separate them, can be pierced in a number of circumstances. For example: A claimant could no longer sue the company he had worked for as it had been dissolved some years before, but its parent company was still active.

Is holding company same as parent company?

parent company, by definition, is pretty much the same thing as a holding company. Parent companies usually acquire subsidiary companies either through mergers or acquisitions.


Cite Term


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https://payrollheaven.com/define/parent-company/
Modern Language Association (MLA):
Parent Company. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. July 22, 2019 https://payrollheaven.com/define/parent-company/.
Chicago Manual of Style (CMS):
Parent Company. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/parent-company/ (accessed: July 22, 2019).
American Psychological Association (APA):
Parent Company. PayrollHeaven.com. Retrieved July 22, 2019, from PayrollHeaven.com website: https://payrollheaven.com/define/parent-company/

Definition Sources


Definitions for Parent Company are sourced/syndicated from:

  • Oxford Dictionary Of Economics
  • BusinessDictionary.com
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 23rd December 2018.