Subsidary v. Affiliate

• Affiliate: An affiliate is a corporation that is related to another corporation through shareholdings, other means of control, or by being a subsidiary, parent, or sibling corporation. This relationship is limited to companies connected by ownership or control, rather than just any shared interest.

• Subsidiary: A subsidiary is specifically a company that is controlled by another company through ownership of more than 50% of its voting stock. This control makes it an affiliate as well, under the broader definition.

In essence, the term "affiliate" is broad and includes any corporation related to another through ownership or control. A subsidiary is a specific type of affiliate where the parent company owns more than 50% of the voting stock, thereby exercising control over the subsidiary.

This means that while all subsidiaries are affiliates, not all affiliates are subsidiaries, as affiliates can also include companies related through other forms of control or lesser ownership percentages.