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Parent Company & Subsidiary company: Question

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  • 01-12-2018 1:58pm
    #1
    scotchman
    Registered Users Posts: 15 ✭


    A General Question: In 2 segments:I would appreciate a general reply.

    As a Parent Company & Subsidiary have separate legal entities is it safe practice for a Subsidiary Company to collect a disputed debt of a parent company.

    Can a Parent Company threaten to remove services of Subsidiary company in order to get their way despite they been incorrect.

    Thank you
    Tagged:


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    #2
    davindub
    Registered Users Posts: 1,447 ✭✭✭davindub


    scotchman wrote: »
    A General Question: In 2 segments:I would appreciate a general reply.

    As a Parent Company & Subsidiary have separate legal entities is it safe practice for a Subsidiary Company to collect a disputed debt of a parent company.

    Can a Parent Company threaten to remove services of Subsidiary company in order to get their way despite they been incorrect.

    Thank you

    Both companies can enforce debts against each other, but the parent company controls the voting rights of the subsidiary (assuming you have that term correct).

    Employee's follow company policies of procurement, so the employee of the parent company may have the authority to source outside the group.

    TBH if you are asking this, the above is not relevant to you or the employee of the parent company.


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