The formation of the subsidiary company does not relieve the parent company of their obligations for the due fulfilment of the contract.
The parent company pays the £75.000 paid to it by the wholly-owned subsidiary to its shareholders.
They are very largely a pattern which is imposed upon the directors of the parent company by the necessities of international law and trade.
A wholly-owned subsidiary company, let us say, pays a dividend of £75.000 to its parent company.
They get all the advice and all the experience from the parent company.
It paid £135 million in dividends and loaned its parent company £229 million.
This step would ensure that no misunderstanding arose about the ultimate intentions of the parent company regarding its overseas investment policies.
He has a duty to his names and a duty to his parent company.
