can u plz explain wholly owned subsidiaries properly..... plzzzzz!!!!
Dear Student,
First of all, let us understand the meaning of a subsidiary company. It is a company whose more than 50% stake is held by another company (known as Holding Company or Parent Company).
For example, a German company named 'Audi' is the parent company and 'Audi India' (which is operating in India' is its subsidiary. It is because the majority shares (stake) of the subsidiary company are held by the Audi.
So, what can be understood from 'Wholly owned Subsidiary Company'? It is a company whose 100% stake is held by the parent company i.e. a company which is completely owned by its parent company. In such a case, majority of the parent companies exercise direct and complete control in the management over its subsidiary.
Hope this answers your query.
Keep posting!!
First of all, let us understand the meaning of a subsidiary company. It is a company whose more than 50% stake is held by another company (known as Holding Company or Parent Company).
For example, a German company named 'Audi' is the parent company and 'Audi India' (which is operating in India' is its subsidiary. It is because the majority shares (stake) of the subsidiary company are held by the Audi.
So, what can be understood from 'Wholly owned Subsidiary Company'? It is a company whose 100% stake is held by the parent company i.e. a company which is completely owned by its parent company. In such a case, majority of the parent companies exercise direct and complete control in the management over its subsidiary.
Hope this answers your query.
Keep posting!!