Legal Encyclopedia. Letter D

Subsidiaries (subsidiaries)

- A branch of the joint-stock company, which is under its control. DK, being legally independent, are subordinate.

Society based D. O. (parent company), due to a predominant stake in the authorized capital has the opportunity to determine the decisions of the D. O. Majority interest is characterized by a proportion of the shares allowing the society founded the D. O. determine the outcome of the vote at the general meeting of shareholders, to make decisions on major issues D. O. (election of board of directors, the executive bodies).

The parent company, influence the decision D. O. prevailing share D. O. in the share capital, in accordance with the contract shall be jointly and severally liable for the transactions that have been committed as a result of this influence.

In this case, shareholders D. O. entitled to demand compensation from the parent company

losses.

If the insolvency (bankruptcy) D. O. due to the fault of the principal company comes vicarious liability for the debts D. O.