Dattervirksomheds

Dattervirksomhed, often translated as subsidiary, refers to a company that is owned or controlled by another company, known as the parent company. The parent company typically holds a majority of the subsidiary's voting stock, giving it the power to influence or dictate the subsidiary's management and operations. This ownership can range from a simple majority to complete control.

Subsidiaries are distinct legal entities, meaning they can enter into contracts, incur debts, and sue or be sued in their own name. This legal separation provides a level of liability protection for the parent company, as the debts and obligations of the subsidiary are generally not the direct responsibility of the parent.

The formation of a subsidiary can serve various strategic purposes for a parent company. It can be used to enter new markets, segregate specific business operations, or manage different product lines. It can also be a way to isolate risk, as the performance or failure of a subsidiary does not necessarily impact the financial health of the entire parent organization.

Parent companies can exert control over their subsidiaries in several ways, including appointing members to the board of directors, approving major strategic decisions, and setting financial targets. However, the degree of autonomy granted to a subsidiary can vary widely, from a high degree of independence to being tightly integrated into the parent company's overall structure. The relationship between a parent and its subsidiary is a fundamental aspect of corporate structure and strategy in the business world.