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Suppose that P ltd acquires 60% of S ltd
and 35% of X ltd.S ltd also has share of 20% in X ltd.
Is X ltd sub of P ltd?
Yes – the definition of a subsidiary is where the parent controls directly or indirectly through others a majority of the shares in the company. In your example, the parent’s interest is 47% (35% direct + (60% x 20%) indirect) but they have control of 55% of the votes so it’s a subsidiary
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