Parent company/subsidiary company

Japanese: 親会社･子会社 - おやがいしゃこがいしゃ

When there is a relationship of control and subordination between companies, the controlling company is called the parent company (controlling company) and the controlled company is called the subsidiary (subordinate company). The parent-subsidiary relationship of a company should be determined comprehensively and practically based on the parent company's shareholding ratio, the degree of share dispersion of the subsidiary, and the size, business relationship, and interlocking of directors of both companies, but for the sake of convenience, the Commercial Code defines parent-subsidiary companies by the formal standard of ownership of a majority of the total issued shares (in the case of a limited liability company, ownership of a majority of the capital) (Commercial Code Article 211-2-1).

Source: Heibonsha World Encyclopedia, 2nd Edition Information

Japanese:

会社間に支配従属関係があるとき，支配する側の会社を親会社(支配会社)，支配される会社を子会社(従属会社)という。会社の親子関係は本来，親会社の株式所有比率，子会社の株式分散度および両会社の規模，取引関係，役員兼任関係等により総合的･実質的に判断されるべきものだが，商法は，運用の便宜のために，発行済株式総数の過半数株式所有(有限会社の場合は資本の過半数出資口数所有)という形式的な基準によって親子会社を定義する(商法211条ノ2‐1項)。

出典　株式会社平凡社世界大百科事典第２版について　情報

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