- Parent Company / Parent Corporation
- holds(owns) more than 50% shareholding or voting stock of another company; or
- controls the Board (Board of Directors) of another company either by electing directors or by way of its influence.
(1) A Ltd. owns 53% shareholding in B Ltd.
(2) A Ltd. elects all Directors in B Ltd.
In the above cases, A Ltd. would be considered as the Parent company of B Ltd.
(1) Parent companies are generally referred to as Holding company.
- Mother Company
A Mother company has similar meaning like a Parent company.
A mother company owns a number of other companies, which may be in the similar line of business or totally other stream of business.
- Sister Company / Sister Concern Company
When more than one company are under the management of a single company (a Parent company); they will be called as sister companies to each other.
C Ltd. is a Parent company of A Ltd. & C Ltd. is also a Parent company of B Ltd.
Therefore, A Ltd. & B Ltd. are sister companies of C Ltd.
(1) Sister companies are generally known as the subsidiary companies of the Parent company.
(2) Generally, sister companies, by its term, do not have any legal recognition/significance. But as a subsidiary company, these companies comply with any rules and regulations prescribed for them.
- Father Company
A Father company too has similar meaning like a Parent company.
- Brother Company
When two or more companies are run under the same group company, it could be called as brother companies.