UK Accounting Glossary
Company which controls one or more subsidiaries in a group.
A 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.
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.
A 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.
A 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.
A 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.
A 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.
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This glossary post was last updated: 23rd December 2018.