Financial Dictionary
Subsidiary
A company whose voting stock is more than 50% controlled by another company, usually referred to as the parent company.
Investopedia Commentary
As long as the parent company has more than 50% of the voting stock in the subsidiary, it has control.
In the case of a foreign subsidiary, the company the subsidiary is incorporated under must adhere to the laws of the country in which it operates, although the parent company still carries the foreign subsidiaries financials on their books (consolidated financial statements).
Related Links
Show and Tell: The Importance of Transparency
The Basics of Mergers and Acquisitions
See also: Acquisition, Consolidated Financial Statements, Hostile Takeover, Merger, Parent Company, Takeover, Wholly Owned Subsidiary