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In the context of a wholly owned subsidiary, wholly means entirely or completely. So, a wholly owned subsidiary really means that the subsidiary is entirely or completely owned by the parent company.
wholly owned subsidiary
parent company
subsidiary
More information on the words discussed in the video, including sound files, examples of usage, common mistakes and encyclopaedic information, can be found in TransLegal's Legal English Dictionary.
Hello and welcome to TransLegal's lesson of the week.
My name is Greg. Thank you for joining us.
Today's or this weeks' lesson has to do with the phrase wholly owned subsidiary.
Now you may be familiar with the term subsidiary already. The term subsidiary refers to a company who is controlled or owned by a higher entity which is generally referred to as their parent company or just the parent.
Now before we get too much into this phrase and this week's lesson, a lot of people have been asking me since I've become so popular through these videos, “Why don't you have a nickname?” Every celebrity, no matter what field or area has a nickname. If you think about all the big celebrities through time, Sammy Davis, Jr., for example, you know, would he have been as popular if he went by his regular given name Samuel Davis, Jr.? I don't think so. So I've been working on this. I've been fielding ideas and I think I've come up with the perfect nickname. I'll see if you like this. From now on, I want to be referred to as Greg-The-Leg. What do you think? Now it might seem a little strange at first glance but LEG, standing for Legal English Guru – or Genius – I haven't figured that out yet. But anyway, from now on, you can refer to me as Greg-The-Leg in these videos. Actually, now that I see it written down it doesn't look as cool as I initially anticipated but, anyway, we'll work on it. Something to think about going forward.
Getting back to wholly owned subsidiary -- wholly owned subsidiary, as we mentioned, the parent-subsidiary relationship. A wholly owned subsidiary really means that the subsidiary is entirely or completely owned by the parent company. Wholly in this sense meaning entirely or completely, and generally it means that the parent company owns 100% of the common stock or the ordinary shares of the subsidiary.
Normally just to have a parent-subsidiary relationship, the parent company would have to own at least 50% of the subsidiary, but as we said, in this situation it means that they not only control the subsidiary but completely and entirely own all shares in the subsidiary.
This has been TransLegal's lesson of the week. If you want to leave comments below, please do so. My name is Greg-The-Leg and thanks for joining us.
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