Declaration Letter For Subsidiary Company Template for England and Wales

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Key Requirements PROMPT example:

Declaration Letter For Subsidiary Company

"I need a Declaration Letter for Subsidiary Company to confirm that our UK tech company owns 75% of a German software development subsidiary, which needs to be submitted to Deutsche Bank by March 2025 for a new credit facility."

Document background
A Declaration Letter for Subsidiary Company becomes necessary when formal confirmation of a parent-subsidiary relationship is required by external parties or for regulatory compliance. Under English and Welsh law, this document provides official confirmation of corporate control and ownership structure. It typically includes details about shareholding, voting rights, and management control, serving as evidence for banks, regulators, suppliers, or other stakeholders who need verification of the corporate relationship. The declaration is particularly important in group structures where clear documentation of corporate relationships is essential for legal or commercial purposes.
Suggested Sections

1. Company Details: Full legal names, registration numbers, and registered addresses of parent and subsidiary companies

2. Relationship Declaration: Clear statement of parent-subsidiary relationship and ownership percentage

3. Purpose of Declaration: Specific reason for issuing the declaration (e.g., regulatory compliance, bank requirements)

4. Confirmation of Control: Statement confirming nature and extent of control over subsidiary

5. Authority Statement: Confirmation of signatory's authority to make declaration

Optional Sections

1. Group Structure: Used when complex corporate relationships need clarification

2. Financial Relationship: Include when declaration is for financial institutions or credit purposes

3. Duration of Relationship: When historical context is relevant

Suggested Schedules

1. Corporate Structure Chart: Visual representation of group structure and ownership

2. Supporting Documents: Relevant certificates of incorporation, shareholding documents

3. Board Resolutions: If required to evidence authority for declaration

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Industries

Companies Act 2006: Primary legislation governing company law in the UK, covering subsidiary relationships (Section 1159), group accounts requirements, corporate governance, and directors' duties and responsibilities

Financial Services and Markets Act 2000: Regulatory framework for financial services companies and their subsidiaries, particularly relevant if the companies operate in regulated financial services

Enterprise Act 2002 and Insolvency Act 1986: Legislation governing corporate groups, particularly regarding group company structures and insolvency proceedings within corporate groups

Corporation Tax Act 2010 and Finance Acts: Tax legislation framework including group relief provisions and tax implications for subsidiary relationships

Competition Law Framework: Including Competition Act 1998 and Enterprise Act 2002, governing anti-competitive behavior and merger control in corporate groups

Data Protection Legislation: UK GDPR and Data Protection Act 2018 requirements for handling personal data within corporate group structures

Employment Law: Including TUPE (Transfer of Undertakings Protection of Employment) Regulations 2006, governing employment relationships in corporate groups

Financial Reporting Requirements: FRC guidelines, IFRS, and UK GAAP standards for financial reporting in group company structures

Industry-specific Regulations: Sector-specific regulatory requirements that may apply depending on the company's field of operation

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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