Definition of
subsidiary
firm controlled by another a company that is controlled by another. A subsidiary operates under the control of a parent or holding company, which may have a majority on the subsidiary's board of directors, or a majority shareholding in the subsidiary-giving it majority voting rights-or it may be named in a contract as having control of the subsidiary. If all of the stock in a company is owned by its parent, it is known as a wholly-owned subsidiary. A subsidiary that is located in a different country from the parent is a foreign subsidiary.
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