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Subsidiary
Practical Law ANZ Glossary w-001-4811 (Approx. 3 pages)
Glossary
Subsidiary
For the purposes of the Corporations Act 2001 (Cth) (CA 2001) and the Fair Work Act 2009 (Cth), a subsidiary is a company that is controlled by a second company. The second company will have control, and the first company will be a subsidiary, if any of the following apply:
- The second company controls the composition of the first company's board.
- The second company is in a position to cast, or control the casting of, more than one-half of the maximum number of votes that might be cast at a general meeting of the first company.
- The second company holds more than one-half of the issued share capital of the first body (excluding any non-voting shares).
For information about holding companies, wholly owned subsidiaries and part owned subsidiaries in the context of a corporate group, see Practice note: overview, Corporate governance: Corporate groups.
For information about subsidiaries in the context of franchisor and group liability provisions, see Practice note, Liability of responsible franchisor entities and holding companies under the Fair Work Act.