A subsidiary is a company that is owned wholly or partly by another company (the parent). There are different types of subsidiaries.
A 51% subsidiary is a company whose ordinary share capital is owned, directly or indirectly, as to 50% or more, by another company.
A 75% subsidiary is a company whose ordinary share capital is owned, directly or indirectly, as to 75% or more, by another company.
A 90% subsidiary is a company whose ordinary share capital is owned, directly or indirectly, as to 90% or more, by another company.
A wholly-owned subsidiary also known as a 100% subsidiary) is a company whose entire ordinary share capital is owned, directly or indirectly, by another company. If one company owns shares of a second company, which owns shares of a third company, the first company is deemed to own part of the third company’s shares.
Any three or more companies of which one owns ordinary share capital in the next, as described in the above example, is called a series. The series is composed of the first owner, the last owned company, and each company in the chain (an intermediary).
Any two companies are referred to as a chain of intermediaries.
A company in a series which owns capital of another company in the series is called an owner. If a company directly owns ordinary shares in another company in a series the two companies are directly related.