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Step Down Subsidiary Company - Meaning, Example & Level

Meaning

A step down subsidiary company means the subsidiary company of a company which is a subsidiary of another company. 

Example

The meaning may seem a little confusing but you will surely understand it easily if you go through the below example:

ABC Limited – a Holding Company

MNO Limited is a subsidiary company of ABC Limited.

XYZ Limited is a subsidiary company of MNO Limited.

In the above case, XYZ Limited is the step down subsidiary of ABC Limited, while MNO Limited is the Direct Subsidiary of ABC Limited.

ABC Limited
    ↓ direct subsidiary of ABC Ltd
MNO Limited
    ↓ step down subsidiary of ABC Ltd
XYZ Limited





Level of Step Down Subsidiary

Suppose, SSS Limited is a subsidiary of XYZ Limited.

In that case, XYZ Limited will be the First step down subsidiary of ABC Limited and SSS Limited will be the step down subsidiary of ABC Limited.

ABC Limited
    ↓ direct subsidiary of ABC Ltd
MNO Limited
    ↓ first level step down subsidiary of ABC Ltd
XYZ Limited
    ↓ second level step down subsidiary of ABC Ltd
SSS Limited



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