Immaterial Subsidiary definition: Copy, customize, and use instantly
Introduction
The term "Immaterial Subsidiary" refers to a subsidiary of a parent company that does not meet specific financial, operational, or strategic thresholds to be considered material. This term is commonly used in legal, financial, and contractual agreements to exclude such entities from certain obligations, guarantees, or compliance requirements. It is essential for delineating responsibilities and ensuring efficient management of corporate structures.
Below are various examples of how "Immaterial Subsidiary" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Immaterial Subsidiary" as a non-material entity
This definition ties "Immaterial Subsidiary" to its limited significance.
"Immaterial Subsidiary" means any subsidiary of the parent company that does not contribute significantly to the parent company's consolidated assets, revenues, or liabilities, as determined by predefined thresholds.
Definition of "Immaterial Subsidiary" as an excluded subsidiary
This definition connects "Immaterial Subsidiary" to exclusions from obligations.
"Immaterial Subsidiary" refers to a subsidiary that is expressly excluded from specific obligations, such as guarantees or covenants, due to its negligible financial or operational impact on the parent company.
Definition of "Immaterial Subsidiary" as a financial threshold entity
This definition links "Immaterial Subsidiary" to financial criteria.
"Immaterial Subsidiary" means any subsidiary whose total assets or revenues do not exceed [insert percentage, e.g., 5%] of the parent company's consolidated total assets or revenues, as calculated on a consolidated basis.
Definition of "Immaterial Subsidiary" as a subsidiary with limited obligations
This definition applies "Immaterial Subsidiary" to reduced compliance responsibilities.
"Immaterial Subsidiary" refers to a subsidiary that is not required to comply with specific provisions of an agreement or contract due to its limited financial, strategic, or operational importance.
Definition of "Immaterial Subsidiary" as a dormant or inactive entity
This definition ties "Immaterial Subsidiary" to inactivity.
"Immaterial Subsidiary" means a subsidiary that is dormant, inactive, or otherwise not engaged in substantial business activities, and therefore does not significantly impact the operations or financial health of the parent company.
Definition of "Immaterial Subsidiary" as a non-operational subsidiary
This definition connects "Immaterial Subsidiary" to lack of operational significance.
"Immaterial Subsidiary" refers to a subsidiary that does not actively operate or contribute materially to the consolidated business activities or financial results of the parent company.
Definition of "Immaterial Subsidiary" as an excluded guarantor
This definition links "Immaterial Subsidiary" to exceptions from guarantees.
"Immaterial Subsidiary" means any subsidiary that is not required to act as a guarantor or provide collateral under the terms of a financial agreement, owing to its immaterial financial or operational status.
Definition of "Immaterial Subsidiary" as a strategically insignificant entity
This definition applies "Immaterial Subsidiary" to its strategic role.
"Immaterial Subsidiary" refers to a subsidiary that is deemed strategically insignificant to the parent company, contributing minimally to overall operations, market presence, or growth strategy.
Definition of "Immaterial Subsidiary" as a compliance-exempt entity
This definition ties "Immaterial Subsidiary" to compliance exclusions.
"Immaterial Subsidiary" means a subsidiary that is exempt from compliance with specific regulatory, financial, or contractual requirements due to its limited impact on the parent company's consolidated position.
Definition of "Immaterial Subsidiary" as a threshold-based designation
This definition connects "Immaterial Subsidiary" to predefined criteria.
"Immaterial Subsidiary" refers to a subsidiary designated as immaterial based on agreed thresholds for assets, revenues, or liabilities, typically not exceeding [insert percentage, e.g., 5%] of the parent company's consolidated metrics.
Definition of "Immaterial Subsidiary" as a negligible financial contributor
This definition ties "Immaterial Subsidiary" to its limited financial impact.
"Immaterial Subsidiary" means any subsidiary whose total contribution to the parent company's consolidated financial metrics, including assets, revenues, and liabilities, does not exceed [insert percentage, e.g., 3%] of the overall consolidated totals.
Definition of "Immaterial Subsidiary" as a non-guaranteeing subsidiary
This definition connects "Immaterial Subsidiary" to exemptions from financial guarantees.
"Immaterial Subsidiary" refers to a subsidiary that is not required to provide guarantees or assume liabilities under loan or credit agreements due to its immaterial financial or operational standing.
Definition of "Immaterial Subsidiary" as an insignificant risk entity
This definition links "Immaterial Subsidiary" to its minimal risk contribution.
"Immaterial Subsidiary" means any subsidiary that does not pose material financial or operational risks to the parent company and whose liabilities, if any, would not significantly affect the consolidated financial position.
Definition of "Immaterial Subsidiary" as a limited liability entity
This definition applies "Immaterial Subsidiary" to entities with restricted exposure.
"Immaterial Subsidiary" refers to any subsidiary whose liabilities, obligations, or business operations are capped or limited to an extent that they do not materially affect the parent company's overall risk exposure.
Definition of "Immaterial Subsidiary" as a de minimis entity
This definition ties "Immaterial Subsidiary" to a de minimis threshold.
"Immaterial Subsidiary" means any subsidiary that qualifies as de minimis by not exceeding predetermined financial or operational thresholds, typically set at [insert percentage, e.g., 1-2%] of the parent company’s consolidated metrics.
Definition of "Immaterial Subsidiary" as a non-revenue generating entity
This definition connects "Immaterial Subsidiary" to its lack of revenue contribution.
"Immaterial Subsidiary" refers to a subsidiary that does not generate revenue or contributes only minimally to the consolidated revenues of the parent company.
Definition of "Immaterial Subsidiary" as a limited activity subsidiary
This definition links "Immaterial Subsidiary" to restricted operational activities.
"Immaterial Subsidiary" means any subsidiary engaged in limited or nominal business activities that do not significantly contribute to the financial or operational results of the parent company.
Definition of "Immaterial Subsidiary" as an excluded reporting entity
This definition applies "Immaterial Subsidiary" to reporting exemptions.
"Immaterial Subsidiary" refers to a subsidiary that is excluded from certain reporting or disclosure requirements due to its insignificant financial, operational, or strategic impact.
Definition of "Immaterial Subsidiary" as a disregarded subsidiary
This definition ties "Immaterial Subsidiary" to internal evaluations.
"Immaterial Subsidiary" means a subsidiary that is internally classified as immaterial for financial, operational, or strategic decision-making purposes, based on predefined thresholds or criteria.
Definition of "Immaterial Subsidiary" as a subsidiary with immaterial intercompany transactions
This definition connects "Immaterial Subsidiary" to minimal intercompany dealings.
"Immaterial Subsidiary" refers to any subsidiary whose intercompany transactions, including loans, transfers, or services, are deemed immaterial to the consolidated financial statements of the parent company.
Definition of "Immaterial Subsidiary" as a dormant financial entity
This definition links "Immaterial Subsidiary" to dormancy in financial operations.
"Immaterial Subsidiary" means any subsidiary that is dormant or inactive in terms of financial operations, with minimal or no revenue generation, expenses, or liabilities.
Definition of "Immaterial Subsidiary" as a low-liability guarantor
This definition applies "Immaterial Subsidiary" to guarantees with limited obligations.
"Immaterial Subsidiary" refers to a subsidiary that provides guarantees or commitments capped at immaterial amounts, ensuring no significant risk to the parent company's consolidated financial health.
Definition of "Immaterial Subsidiary" as a non-consolidated entity
This definition ties "Immaterial Subsidiary" to exclusions from consolidated financial statements.
"Immaterial Subsidiary" means any subsidiary that is excluded from the consolidated financial statements of the parent company due to its insignificant contribution to the overall financial position or results.
Definition of "Immaterial Subsidiary" as a minor operational unit
This definition connects "Immaterial Subsidiary" to limited business activities.
"Immaterial Subsidiary" refers to any subsidiary engaged in minor or insignificant operations, with no material effect on the parent company’s consolidated operational outcomes.
Definition of "Immaterial Subsidiary" as an unleveraged entity
This definition links "Immaterial Subsidiary" to minimal financial leverage.
"Immaterial Subsidiary" means any subsidiary with negligible or no external borrowing, ensuring it poses no significant financial risk to the parent company.
Definition of "Immaterial Subsidiary" as a low-asset entity
This definition applies "Immaterial Subsidiary" to minimal asset holdings.
"Immaterial Subsidiary" refers to any subsidiary whose total assets are below a specified threshold, typically not exceeding [insert percentage, e.g., 2-3%] of the parent company’s consolidated assets.
Definition of "Immaterial Subsidiary" as a geographically isolated unit
This definition ties "Immaterial Subsidiary" to its limited geographic impact.
"Immaterial Subsidiary" means a subsidiary that operates in a geographic area or market with minimal influence on the parent company’s consolidated financial or operational performance.
Definition of "Immaterial Subsidiary" as a reduced compliance entity
This definition connects "Immaterial Subsidiary" to limited compliance obligations.
"Immaterial Subsidiary" refers to a subsidiary that is not required to meet the full compliance obligations imposed on the parent company due to its negligible size, scope, or financial contributions.
Definition of "Immaterial Subsidiary" as a limited liability participant
This definition links "Immaterial Subsidiary" to restricted liabilities in agreements.
"Immaterial Subsidiary" means any subsidiary whose liabilities under specific contracts or agreements are capped to ensure no material impact on the parent company’s financial health.
Definition of "Immaterial Subsidiary" as a designated non-core entity
This definition applies "Immaterial Subsidiary" to non-core operations.
"Immaterial Subsidiary" refers to any subsidiary designated as non-core to the parent company’s primary business operations, with limited strategic or financial significance.
Definition of "Immaterial Subsidiary" as an excluded capital contributor
This definition ties "Immaterial Subsidiary" to limited capital involvement.
"Immaterial Subsidiary" means a subsidiary that does not contribute materially to the parent company’s capital structure, financing arrangements, or equity base.
Definition of "Immaterial Subsidiary" as an equity-neutral entity
This definition connects "Immaterial Subsidiary" to minimal equity impact.
"Immaterial Subsidiary" refers to any subsidiary whose equity ownership or activities have no material effect on the consolidated equity of the parent company.
Definition of "Immaterial Subsidiary" as an isolated risk entity
This definition links "Immaterial Subsidiary" to limited risk exposure.
"Immaterial Subsidiary" means a subsidiary whose operations or financial obligations are isolated and do not significantly expose the parent company to risks, liabilities, or market fluctuations.
Definition of "Immaterial Subsidiary" as a non-revenue-generating participant
This definition applies "Immaterial Subsidiary" to revenue neutrality.
"Immaterial Subsidiary" refers to a subsidiary that generates little to no revenue and has minimal financial relevance to the consolidated financial performance of the parent company.
Definition of "Immaterial Subsidiary" as a restricted financial contributor
This definition ties "Immaterial Subsidiary" to capped financial contributions.
"Immaterial Subsidiary" means any subsidiary whose financial contributions, including assets and revenues, are restricted to levels below agreed thresholds in corporate agreements.
Definition of "Immaterial Subsidiary" as an excluded covenant entity
This definition ties "Immaterial Subsidiary" to exclusions from contractual covenants.
"Immaterial Subsidiary" means any subsidiary that is excluded from compliance with certain covenants or obligations under an agreement due to its negligible financial or operational impact.
Definition of "Immaterial Subsidiary" as a negligible intercompany participant
This definition connects "Immaterial Subsidiary" to minimal intercompany involvement.
"Immaterial Subsidiary" refers to a subsidiary whose intercompany transactions, such as loans or transfers, are insignificant and do not materially affect the parent company’s financial position.
Definition of "Immaterial Subsidiary" as a dormant legal entity
This definition links "Immaterial Subsidiary" to inactivity in operations.
"Immaterial Subsidiary" means any subsidiary that is legally registered but not actively engaged in business operations, with no material contribution to the parent company’s financial results.
Definition of "Immaterial Subsidiary" as a strategically irrelevant unit
This definition applies "Immaterial Subsidiary" to non-strategic entities.
"Immaterial Subsidiary" refers to a subsidiary that does not play a strategic role in the parent company’s core operations, market strategy, or long-term objectives.
Definition of "Immaterial Subsidiary" as an excluded reporting unit
This definition ties "Immaterial Subsidiary" to financial reporting exemptions.
"Immaterial Subsidiary" means any subsidiary excluded from consolidated financial reporting due to its insignificant size, operational activity, or financial impact.
Definition of "Immaterial Subsidiary" as an independent liability entity
This definition connects "Immaterial Subsidiary" to liability segregation.
"Immaterial Subsidiary" refers to a subsidiary whose liabilities are segregated and do not materially impact the financial health of the parent company.
Definition of "Immaterial Subsidiary" as a low-capitalized subsidiary
This definition links "Immaterial Subsidiary" to limited capital investment.
"Immaterial Subsidiary" means a subsidiary with low capitalization, contributing minimally to the overall equity and financial structure of the parent company.
Definition of "Immaterial Subsidiary" as a regional or isolated operator
This definition applies "Immaterial Subsidiary" to limited geographic or market presence.
"Immaterial Subsidiary" refers to a subsidiary operating in a niche or regional market that does not materially affect the parent company’s global financial or operational results.
Definition of "Immaterial Subsidiary" as a limited exposure entity
This definition ties "Immaterial Subsidiary" to capped risk exposure.
"Immaterial Subsidiary" means a subsidiary with limited exposure to financial, operational, or market risks, ensuring no significant impact on the parent company’s consolidated position.
Definition of "Immaterial Subsidiary" as a non-core holding
This definition connects "Immaterial Subsidiary" to non-core investments.
"Immaterial Subsidiary" refers to any subsidiary classified as a non-core holding with minimal relevance to the parent company’s principal business activities or objectives.
Definition of "Immaterial Subsidiary" as a minimal contribution guarantor
This definition links "Immaterial Subsidiary" to guarantees with negligible impact.
"Immaterial Subsidiary" means a subsidiary that provides guarantees or collateral of such minimal value that it does not materially affect the consolidated financial position of the parent company.
Definition of "Immaterial Subsidiary" as a regulatory exemption entity
This definition applies "Immaterial Subsidiary" to compliance exemptions.
"Immaterial Subsidiary" refers to a subsidiary that qualifies for regulatory or contractual exemptions due to its limited financial, operational, or strategic relevance.
Definition of "Immaterial Subsidiary" as an internally designated entity
This definition ties "Immaterial Subsidiary" to internal classifications.
"Immaterial Subsidiary" means any subsidiary classified by the parent company as immaterial based on pre-established thresholds for assets, revenues, or strategic impact.
Definition of "Immaterial Subsidiary" as a non-operational asset holder
This definition connects "Immaterial Subsidiary" to asset ownership without operations.
"Immaterial Subsidiary" refers to a subsidiary that holds assets but is not actively engaged in business operations, resulting in negligible financial contributions to the parent company.
Definition of "Immaterial Subsidiary" as a capped revenue generator
This definition links "Immaterial Subsidiary" to minimal revenue thresholds.
"Immaterial Subsidiary" means any subsidiary whose revenue contributions are capped at a predefined percentage, typically below [insert percentage, e.g., 1-2%] of the parent company’s consolidated revenues.
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