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Subsidiary company is a kind of company which is part of a larger company .Subsidiaries is the common form of business these days. For the purpose of taxation and regulation subsidiary is separate legal entity. The one of the common ways to control subsidiary company is holding of share by the parent company. These shares give parent the necessary vote to determine the composition of the board of subsidiary and also exercise control.

Subsidiary Company Liability

A parent company is liable for an offence committed by an employee of the subsidiary company. The main reason for the incorporation of such liability is that the employees of the subsidiary are considered as agents of the parent company and the parent and the subsidiary have unitary management.