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25-526: Ratnagiri Gas and Power Private Limited (RGPPL) is a Subsidiary of NTPC Limited. The company was established to take over and revive the assets of the defunct Dabhol Power Company . RGPPL owns one of India's largest and only LNG based power plants and the LNG regasification terminal at Dabhol . The Ratnagiri Gas and Power company was made by the Government of Maharashtra and Government of India in 2005 to rescue

50-405: A corporate , although this term can also apply to cooperating companies and their subsidiaries with varying degrees of shared ownership. A parent company does not have to be the larger or "more powerful" entity; it is possible for the parent company to be smaller than a subsidiary, such as DanJaq , a closely held family company, which controls Eon Productions , the large corporation which manages

75-850: A combined 1967 MW of electricity to India's western grid. This article about an Indian company is a stub . You can help Misplaced Pages by expanding it . Subsidiary The subsidiary can be a company (usually with limited liability ) and may be a government-owned or state-owned enterprise . They are a common feature of modern business life, and most multinational corporations organize their operations in this way. Examples of holding companies are Berkshire Hathaway , Jefferies Financial Group , The Walt Disney Company , Warner Bros. Discovery , or Citigroup ; more focused companies include IBM , Xerox , and Microsoft . These, and others, organize their businesses into national and functional subsidiaries, often with multiple levels of subsidiaries. Subsidiaries are separate, distinct legal entities for

100-476: A definition that provides that "control" is "the capacity of an entity to dominate decision-making, directly or indirectly, in relation to the financial and operating policies of another entity so as to enable that other entity to operate with it in pursuing the objectives of the controlling entity". This definition was adapted in the Australian Corporations Act 2001 : s 50AA. Furthermore, it can be

125-404: A joint arrangement (joint operation or joint venture) over which two or more parties have joint control (IFRS 11 para 4). Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. The Companies Act 2006 contains two definitions: one of "subsidiary" and

150-432: A judgment against the parent if they can pierce the corporate veil and prove that the parent and subsidiary are mere alter egos of one another. Thus any copyrights, trademarks, and patents remain with the subsidiary until the parent shuts down the subsidiary. Ownership of a subsidiary is usually achieved by owning a majority of its shares . This gives the parent the necessary votes to elect their nominees as directors of

175-455: A subsidiary undertaking, if: The broader definition of "subsidiary undertaking" is applied to the accounting provisions of the Companies Act 2006, while the definition of "subsidiary" is used for general purposes. In Oceania , the accounting standards defined the circumstances in which one entity controls another. In doing so, they largely abandoned the legal control concepts in favour of

200-439: A trusted friend". The existence of "another self" was first fully recognized in the 18th century, when Anton Mesmer and his followers used hypnosis to separate the alter ego. These experiments showed a behavior pattern that was distinct from the personality of the individual when he was in the waking state compared with when he was under hypnosis. Another character had developed in the altered state of consciousness but in

225-399: A useful part of the company that allows every head of the company to apply new projects and latest rules. Alter egos An alter ego ( Latin for "other I") means an alternate self , which is believed to be distinct from a person's normal or true original personality . Finding one's alter ego will require finding one's other self, one with a different personality. Additionally,

250-997: Is a subsidiary/child company of the ultimate parent company, while a second-tier subsidiary is a subsidiary of a first-tier subsidiary: a "grandchild" of the main parent company. Consequently, a third-tier subsidiary is a subsidiary of a second-tier subsidiary—a "great-grandchild" of the main parent company. The ownership structure of the small British specialist company Ford Component Sales, which sells Ford components to specialist car manufacturers and OEM manufacturers, such as Morgan Motor Company and Caterham Cars , illustrates how multiple levels of subsidiaries are used in large corporations: The word "control" and its derivatives (subsidiary and parent) may have different meanings in different contexts. These concepts may have different meanings in various areas of law (e.g. corporate law , competition law , capital markets law ) or in accounting . For example, if Company A purchases shares in Company B, it

275-497: Is possible that the transaction is not subject to merger control (because Company A had been deemed to already control Company B before the share purchase, under competition law rules), but at the same time Company A may be required to start consolidating Company B into its financial statements under the relevant accounting rules (because it had been treated as a joint venture before the purchase for accounting purposes). Control can be direct (e.g., an ultimate parent company controls

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300-464: The James Bond franchise. Conversely, the parent may be larger than some or all of its subsidiaries (if it has more than one), as the relationship is defined by control of ownership shares, not the number of employees. The parent and the subsidiary do not necessarily have to operate in the same locations or operate the same businesses. Not only is it possible that they could conceivably be competitors in

325-450: The altered states of the ego may themselves be referred to as alterations . A distinct meaning of alter ego is found in the literary analysis used when referring to fictional literature and other narrative forms, describing a key character in a story who is perceived to be intentionally representative of the work's author (or creator), by oblique similarities, in terms of psychology , behavior speech, or thoughts, often used to convey

350-410: The author's thoughts. The term is also sometimes, but less frequently, used to designate a hypothetical "twin" or "best friend" to a character in a story. Similarly, the term alter ego may be applied to the role or persona taken on by an actor or by other types of performers. Cicero coined the term as part of his philosophical construct in 1st-century Rome , but he described it as "a second self,

375-422: The controversial and nearly defunct Dabhol power company , a gas powered electricity provider owned by Enron Corporation . In 1992, Enron Corporation signed a deal to build a gas powered power station at Dabhol, from which the government of Maharashtra would purchase electricity for 20 years. The project remained controversial from the beginning, mostly due to the high cost of electricity (more than 2,000 times what

400-453: The first-tier subsidiary directly) or indirect (e.g., an ultimate parent company controls second and lower tiers of subsidiaries indirectly, through first-tier subsidiaries). Recital 31 of Directive 2013/34/EU stipulates that control should be based on holding a majority of voting rights, but control may also exist where there are agreements with fellow shareholders or members. In certain circumstances, control may be effectively exercised where

425-415: The government was paying per unit for hydro electricity) and corruption at the highest levels. Despite protests, the project was built and began producing electricity in 1998. The Godbole committee report in 2001 presented a scathing criticism of the project and its terms. The plant stopped production in 2001 when the government could not pay for its electricity costs. In 2002, Enron became bankrupt. In 2005,

450-574: The jetty brought back the memories of the Enron’s aborted Dabhol Power Company's (DPC) power project. The DPC project was later taken over by the Central Government which renamed it as RGPPL which began operations in May 2006. The RGPPL successfully began re-gasification process of the LNG thereby making the LNG jetty free to be used for regular berthing and unloading of LNG cargo. Its three power blocks supply

475-555: The marketplace, but such arrangements happen frequently at the end of a hostile takeover or voluntary merger. Also, because a parent company and a subsidiary are separate entities, it is entirely possible for one of them to be involved in legal proceedings, bankruptcy, tax delinquency, indictment or under investigation while the other is not. In descriptions of larger corporate structures, the terms "first-tier subsidiary", "second-tier subsidiary", "third-tier subsidiary", etc. describe multiple levels of subsidiaries. A first-tier subsidiary

500-479: The other "subsidiary undertaking". According to s.1159 of the Act, a company is a "subsidiary" of another company, its "holding company", if that other company: The second definition is broader. According to s.1162 of the Companies Act 2006, an undertaking is a parent undertaking in relation to another undertaking, a subsidiary undertaking, if: An undertaking is also a parent undertaking in relation to another undertaking,

525-468: The parent holds a minority or none of the shares in the subsidiary. According to Article 22 of the directive 2013/34/EU an undertaking is a parent if it: Additionally, control may arise when: Under the international accounting standards adopted by the EU a company is deemed to control another company only if it has all the following: A subsidiary can have only one parent; otherwise, the subsidiary is, in fact,

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550-468: The plant was taken over by the Government of Maharashtra . The company was established on 8 July 2005, with GAIL and NTPC each holding just over 25.51% of its equity. The Maharashtra State Electricity Board (MSEB) and financial institutions hold the remaining stock. RGPPL has operationalised the 5 million tonnes per year LNG Block (Commissioning cargo ‘LNG Pioneer’). The vessel carrying 1,38,000 cubic meters of Liquefied Natural Gas (LNG) docked at

575-430: The purposes of taxation , regulation and liability . For this reason, they differ from divisions which are businesses fully integrated within the main company, and not legally or otherwise distinct from it. In other words, a subsidiary can sue and be sued separately from its parent and its obligations will not normally be the obligations of its parent. However, creditors of an insolvent subsidiary may be able to obtain

600-402: The same body. Freud throughout his career would appeal to such instances of dual consciousness to support his thesis of the unconscious. He considered that "We may most aptly describe them as cases of a splitting of the mental activities into two groups, and say that the same consciousness turns to one or the other of these groups alternately". Freud considered the roots of the phenomenon of

625-460: The subsidiary, and so exercise control. This gives rise to the common presumption that 50% plus one share is enough to create a subsidiary. There are, however, other ways that control can come about, and the exact rules both as to what control is needed, and how it is achieved, can be complex (see below). A subsidiary may itself have subsidiaries, and these, in turn, may have subsidiaries of their own. A parent and all its subsidiaries together are called

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