Parent Corporation Eurostat

Categories: Economics,

The concept of a parent corporation is symmetrical to the concept of subsidiary corporation.Corporation A is the parent corporation of corporation B (which is then a subsidiary of A): either if A holds the legal power to control B, i.e., if A holds the majority of the shareholders' or associates voting rights of B (including cases where A holds a majority of voting rights pursuant to an agreement with other shareholders), or if A has the right to appoint or remove a majority of the board members of B, or if A has the right to exercise a dominant influence pursuant to a contract or a provision in the articles of association (German law provides for such contracts or clauses), or if nobody holds the legal power to control B, but A has effective control over B, i.e., there is a presumption of a participating interest of A in B through the ownership by A of 20 % or more of the capital of B, and A actually exercises a dominant influence over B, or B is managed on a unified basis by A.