Establishing A Subsidiary Governance Framework – A Checklist

Article by Meera Shah

Subsidiaries are a common feature of today's business structures, as corporations operate across multiple jurisdictions and business areas. How then are corporate governance principles cascaded, consistently and effectively, down to the subsidiaries? By establishing subsidiary governance frameworks to create sound governance practices and promote best practice.

Establishing a subsidiary governance framework – at a glance checklist

Initial steps

• Obtain holding company board and subsidiary boards 'buy-in'; set the tone from the top.
• Audit/diligence subsidiaries in the group and collate key information/documents on them.
• Establish/resource the team for the project.