What Is a Sister Company?
A sister company, also known as a sibling company, refers to several companies controlled by the same shareholder. [1]
Sister company
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- Chinese name
- Rate of return
- Also called
- For Brother Companies
- Meaning
- Several companies controlled by the same shareholder
- Types of
- the company
- A sister company, also known as a sibling company, refers to several companies controlled by the same shareholder. [1]
- A sister company belongs to several subsidiaries of a parent company. [2]
- Sister companies are independent from each other on the surface, but because the operating decision-making rights of each company are in the hands of the same shareholder, it is easy for the companies to form an integration in terms of property and profit distribution. Personality confusion among shareholders. If the sister company is overly controlled by the controlling shareholder, the transaction of profit transfer between companies is very likely to occur. Therefore, according to the enterprise as a whole, sister companies with mixed personalities can be regarded as a whole, and they can jointly take responsibility for creditors. [1]