Subsidiary company is an entity that is controlled by a separate higher entity. The controlled entity can be a company, corporation, or limited liability company. The controlling entity is known as holding company.
For instance, Media Prima Berhad (MPB) is a holding company. MPB has several subsidiary companies such as Alt Media, Fly FM, TV3, 8TV and so on.
MPB can decide new appointments in the subsidiary companies. For instance, Ahmad Izham Omar will take on the role of Executive Director of 8TV, the station he launched in 2004. As Executive Director, Izham will stay involved in TV’s strategic direction but will leave the day-to-day operations to General Manager Lam Swee Kim who will be reporting to Dato Sri Farid Ridzuan, Group Chief Executive Officer of Media Prima Television Networks. This exercise will also simplify and consolidate the management structure of Media Prima TV Networks. Ahmad Izham Omar will now be able to focus n Alt Media, a Media Prima subsidiary focusing on new media, underlining MPB’s emphasis in the digital space. Izham has been CEO of Alt Media since January 2009. As the result, this fresh changes and new introductions to its senior management team will reinforce the Group’s strong focus to meet the future challenges of media industry.
Based ont this case,there is showing that the relationship between the holding company and subsidiary company. Both companies must have very intimated relationship to help each other in the industry.
Prepared by,
Fong Yok Yan (1071120015)
Based ont this case,there is showing that the relationship between the holding company and subsidiary company. Both companies must have very intimated relationship to help each other in the industry.
Prepared by,
Fong Yok Yan (1071120015)
Good posting. Thanks for sharing!
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