Material Subsidiary | Practical Law

Material Subsidiary | Practical Law

Material Subsidiary

Material Subsidiary

Practical Law Glossary Item 6-382-3619 (Approx. 2 pages)

Glossary

Material Subsidiary

A subsidiary of a company which accounts for more than a certain percentage (typically 5% or 10%) of the consolidated assets or consolidated revenues of the borrower and its subsidiaries. For example, the loan agreement may provide that only material subsidiaries are required to be guarantors of the borrower's obligations under the loan agreement.