Regulation of corporate governance in subsidiaries

In the modern world, one company is often insufficient to operate a large-scale enterprise, especially if it covers different industries. In such cases, entrepreneurs establish holding companies — structures that bring together several vertically and horizontally related companies. The entrepreneurs themselves hold shares in the authorized capital of a single top-tier company. This company will hereinafter be referred to as the parent company, its associated companies as subsidiaries, and the owners of the holding company as beneficiaries.