5 ms·
How do you stop fragmentation of large companies into subsidiaries who are all just below the limit where regulations kick in?
by TrainedMonkey 5y ago
How do you stop fragmentation of large companies into subsidiaries who are all just below the limit where regulations kick in?
- vlovich123 5y agoOwnership stakes - for example if company X owns >10% of company Y, then the regulations for company X could kick in for company Y. There’s some conceptual precedent for reporting requirements of publicly held companies (if you own more than a certain percentage it has to be publicly reported). The subsidiary fragmentation itself is uninteresting from a regulatory perspective as long as the regulatory environment is carefully crafted to pierce through intentional corporate governance obfuscation.
- PedroBatista 5y agoThat's easily solved by ownership. The only problem is the "magic" somehow sudden lack of competence some individuals/institutions have when dealing with these companies.