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What is Step Down Subsidiary Company? Meaning with Example

Meaning

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

XYZ Limited is the 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
MNO Limited
    ↓ step down subsidiary of ABC
XYZ Limited

First step down subsidiary / first level step down subsidiary meaning

Suppose, SSS Limited is the 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
MNO Limited
    ↓ first step down subsidiary of ABC
XYZ Limited
    ↓ step down subsidiary of ABC
SSS Limited

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