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Hi Bagman,according to german law and as far as I know, if a...

  1. 227 Posts.
    Hi Bagman,

    according to german law and as far as I know, if a company owns 100% of a subsidiary (a "daughter", translated from the german term "Tochtergesellschaft") and this daughter, for example, is getting paid for 80% of its value, this revenue (money) will/may finally go into the account of the "mother". The mother still holds 100% of the daughter after the deal and can, of it`s own, decide, wether it will leave the daughter, now with a value of only 20%, and taking the 80% on it?s own balance sheet. In other words, the mother in this case can use the money of the transaction of the daughter for it`s own purpose.

    transmeta
 
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