Glossary Item

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Parent Company

A parent company is a company that controls another company (which is then called its subsidiary com­pany) either by owning more than 50% of the share capital of the second company or by controlling the composition of its board of directors.

A parent company may have thousands of subsidiary companies, some of which will themselves be parent companies, in which case they are called intermediate parents. In that case the company at the top of the hierarchy of control is called the ultimate parent company.


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