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A subsidiary (body corporate) is an enterprise that's controlled by another controlling enterprise (another body corporate) in one of the ways below.
The controlling enterprise of the subsidiary either:
Now, what does it mean to control the composition of the subsidiary’s board? It means the controlling entity is able to appoint or remove all or the majority of the subsidiary’s board (the directors and secretaries).
Also, keep in mind, while general meetings are not a legal requirement under the Corporations Act, shareholders (also known as members) have the right to call general meetings.
Do you have questions about a subsidiary?
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