datterselskaps

A datterselskaps, often translated as a subsidiary company, is a business entity that is owned or controlled by another company, known as the parent company or holding company. The level of control is typically determined by the parent company's ownership of a majority of the subsidiary's voting stock. This ownership allows the parent company to influence or direct the subsidiary's management and operational decisions.

Subsidiaries can be established for various strategic reasons. They might be created to isolate financial risk, allowing the parent company to limit its exposure to potential liabilities of the subsidiary. Alternatively, a subsidiary can be used to enter new markets, develop specific product lines, or manage distinct business operations separately from the parent's core activities. This separation can offer operational flexibility and a clearer focus for each entity.

The legal relationship between a parent and subsidiary is significant. While the subsidiary is a separate legal entity, its actions and financial performance are often consolidated into the parent company's financial statements. This means that the parent company reports the assets, liabilities, revenues, and expenses of its subsidiaries on its own balance sheet and income statement. This consolidation provides a comprehensive view of the overall financial health and performance of the entire corporate group. The formation and dissolution of subsidiaries are governed by corporate law and are typically subject to regulatory oversight.