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Can a subsidiary company have the same board of directors as the parent company?
Wiki User
∙ 13y ago
I believe that they can technically, but it's far, far more usual to simply have either one board member in common, or a simple majority of the board in common.
Wiki User
∙ 13y ago
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Can a subsidiary company have a separate board of directors from the parent company?
A subsidiary company definitely can have its board of directors, and practically, it usually have. Basically its parent company who appoints directors in board of directors of subsidiary companies. Day to day matters of the subsidiary company cannot be run by parent company's board of directors, so it is necessary for a subsidiary to have its own board of directors which ultimately reports to parent company's board of directors.
Why does a company become a subsidiary company and a holding company?
A company will be called a subsidiary/holding(sebtion-4 of companies act,1956)- if a company holding a company of another i.e it may be of (i).where the other company controls the composition of its board of directors,or (ii)where the company hold more than 50 percent of paidup capital,or (iii) The company is subsidiary of the subsidiary. IS CALLED THE SUBSIDIARY COMPANY .The other than subsidiary is called holding i.e which controls the other company due to the conditions stated above
Who is parent company of General Electric?
General Electric is not owned by a parent company. They are self-governing and own many subsidiaries. Their board of directors reports on behalf of the entire company, GE.
Which type of practice is manage by a board of directors?
A company or organization has a board of directors.
Was Deval Patrick ever on the Board of Countrywide Mortgage Do?
Not sure, but he was on the board of directors of ACC Capital Holdings, the parent company of Ameriquest and Argent Mortgage.
What does a board of directors do?
They oversee a company and answer to stock holders. The board of directors provides the company with direction and advice. It is the responsibility of the board of directors to ensure that the company fulfills its mission statement. In doing so, the board of directors frequently sets the company's policy objectives. A good board of directors should include knowledgeable and experienced business people. From: http:/www.wisegeek.com/what-does-a-board-of-directors-do.htm A board of directors should NOT be made up of friends and relatives; one or two members can be friends or acquaintances if they are business people or experienced board members.
Is there a term called sleeping director in a company?
There is silent (or sleeping) director and there is shadow director.I'll give an example for each.Silent directors do not participate in the business much, and usually do not know a whole lot about what's going on. When other directors are negligent or breach their fiduciary duties, silent directors claim that because they were not concerned with the nature of the business and because they did not know what the other directors were doing, they should not be liable. Once upon a time, this may have worked. However, all directors, now, executive and non-executive (they have no employment contract) are expected to be continually informed (AWA v Daniels) participate in the company's affairs, acquire the appropriate information to make decisions and be aware of any major dilemmas : CBA v Friedrich. As such, silent directors are expected to know what's going, and will be liable for ignorance if there is a breach in fidiciary duties or neglgience.On the other hand, shadow directors are what parent companies (or other controlling companies) are reffered to when they control the board of directors of the subsidiary, either through financial or other influences: standard chartered bank v antico. In this case, the instructions provided by the parent to the subsidiary were followed without independent consideration and also, when conflifcint matters arose, the Board of the subsidiary voted in favour of the parent (holding company). As such, when a company is a shadow director, it will owe all the normal fidicary and statutory duties owed by normal directors, and will be liable if it breaches any of them!
Do board of directors own the company?
Yes
What is a collective noun for executives?
The directors of a company are usually called a board of directors. The directors of a company are rarely all together as a group unless at a director's meeting in a room with a 'board', and obsolete term for 'table'.
Can the officer of a company also be on the board of directors?
A director of a company is an officer of that company.
How many members in board of directors in stocks?
It is generally a requirement that all members of a board of directors hold stock in the company.
What is collective terem for group of directors who run a company?
Usually they are referred to as the Board of Directors.
