Simple definition
A company that owns or controls another company.
Corporate
What Does Parent Company Mean?
A company that owns or controls another company.
Example in a contract
A contract may use “parent company” when describing a company that owns or controls another company.
What parent company means in a contract
In a contract, this term should be read in the context of the surrounding clause, defined terms, cross-references, and governing law.
Why it may matter
Its practical effect depends on the exact wording and how it connects to the rights and obligations elsewhere in the agreement. Review the exact language rather than relying on the label alone.
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FAQ
Questions about parent company.
What does parent company mean in plain English?+
A company that owns or controls another company.
Where might parent company appear in a contract?+
In a contract, this term should be read in the context of the surrounding clause, defined terms, cross-references, and governing law.
Is this definition legal advice?+
No. ClauseInsight provides concise informational explanations. The legal effect of a term depends on the complete document, facts, and applicable law.