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Template:Branches and affiliates: Difference between revisions
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===Affiliate=== | ===Affiliate=== | ||
By contrast, a company’s [[affiliate]] is a related but separate [[legal entity]]. If a company is a person, its affiliate is its parent, child, or sibling. Parent affiliates are actually even called [[parent]]s. Children are [[wholly-owned subsidiaries]], ugly | By contrast, a company’s [[affiliate]] is a related but separate [[legal entity]]. If a company is a person, its affiliate is its parent, child, or sibling. Parent affiliates are actually even called [[parent]]s. Children are [[wholly-owned subsidiaries]], ugly stepchildren are [[majority owned subsidiaries]] and siblings are known as companies “under common ownership”. | ||
[[Affiliate|Affiliates]] may be consolidated from a financial reporting perspective, but generally (and unless it has specifically agreed to) an affiliate is not responsible for performing the obligations of its any of its affiliates, unless it agrees to do so by contract (such as a [[guarantee]]). | [[Affiliate|Affiliates]] may be consolidated from a financial reporting perspective, but generally (and unless it has specifically agreed to) an affiliate is not responsible for performing the obligations of its any of its affiliates, unless it agrees to do so by contract (such as a [[guarantee]]). | ||
===Examples=== | ===Examples=== | ||
*''Deutsche Bank AG, London Branch'' is a “branch”: a physical manifestation in London of the Deutsche Bank AG, an [[Aktiengesellschaft]]. It is nonetheless a whole, integrated part of Deutsche Bank AG with no independent personality or other standing. It can be called upon to perform any obligation owed by Deutsche Bank AG. | *''Deutsche Bank AG, London Branch'' is a “branch”: a physical manifestation in London of the Deutsche Bank AG, an [[Aktiengesellschaft]]. It is nonetheless a whole, integrated part of Deutsche Bank AG with no independent personality or other standing. It can be called upon to perform any obligation owed by Deutsche Bank AG. | ||
*“Goldman Sachs International”, on the other hand, is an unlimited liability company incorporated in England and Wales which is legally distinct from The Goldman Sachs Group, Inc., and would not count as a “branch”. | *“Goldman Sachs International”, on the other hand, is an unlimited liability company incorporated in England and Wales which is legally distinct from The Goldman Sachs Group, Inc., and would not count as a “branch”. | ||