Parent company

A parent company is a company that has controlling influence over a legally independent company carries (subsidiaries). The overall structure of all of these companies is called Group.

Through an economic dependence (uniform management of the subsidiary by the parent and / or through financial control as a result of majority ownership of the shares ), the mother - daughter relationship founded. A special organization form of the parent company is the holding company.

In Germany a result of this relationship on the basis of § 290 HGB for the mother, the obligation to prepare consolidated financial statements.