Also known as: affiliates · affiliated · affiliating · affiliation · subsidiary · branch
Written by attorneys · grounded in primary & secondary sources — see below
An entity related to another by shareholdings or other means of control. A subsidiary, parent, or sibling corporation qualifies as an affiliate when one exercises influence over the other's decisions or operations.
Judge Harlan directs his law clerk to research a case involving Argonaut Shipping. The clerk's brother-in-law serves as general counsel for an affiliate of Argonaut Shipping. Harlan permits the clerk to continue working on the matter without recusal or disclosure.
Congress passes a statute allowing the House alone to block an executive agency's approval of a merger between Astra Aerospace and its foreign affiliate. The House later issues a resolution halting the transaction after the agency had already granted clearance.
Select any source to read its text and confirm it supports the definition.
Natural parents contract directly with adoptive parents through a lawyer employed by an affiliate of a licensed adoption agency. The arrangement occurs in a state that prohibits nonagency intermediaries from facilitating adoptions.
During a hearing, counsel for Alliance Holdings repeatedly refers to opposing counsel's affiliation with a religious organization that also employs the lawyer's spouse at an affiliate entity. The judge fails to intervene or instruct counsel to stop.
Ashford Manufacturing sells shares through its wholly owned affiliate to investors without registration. The affiliate's officers report directly to Ashford's board and follow its pricing directives.
Daimler AG maintains no offices in California, but its U.S. affiliate distributes vehicles there. Plaintiffs sue Daimler in California over events occurring entirely in Argentina.
Majority ownership typically establishes control and therefore affiliate status. Even less than majority ownership can suffice when other indicia of control exist, such as board influence or contractual rights.
No. Affiliate status arises from any relationship of control, including common ownership or contractual arrangements that allow one entity to direct another's decisions.
An affiliate's actions bind the parent only when the parent exercises such domination that the affiliate's separate existence is disregarded or when the affiliate acts at the parent's direction.
Affiliates face stricter resale limitations because their sales are treated as distributions by the issuer. Control persons must comply with volume and manner-of-sale requirements even for registered securities.
…a right to establish branches or offices of discount and deposit within any State, and the State within which such branch is established cannot, without violating the Constitution, tax that branch. The State governments have no right to tax any of the constitutional means employed by the Government of the…