Affiliate – a person (natural or legal) that may affect the activities of natural or legal persons, GPRS tracing business activities. In simple words, affiliate (person or organization) directly involved in the control of joint-stock company.
The term "affiliate" used in the Russian legislation, was borrowed from Anglo-American law. English verb affiliate means verb: to join, to attach, to tie.
"Affilirovany someone" means to enter into the management of one company official to another.
In European law affiliates - are firms that are dependent on other companies. In Russian legislation the word affiliate applies to the dependent, and to the prevailing parties. The main sign of affiliation is the ability to have an impact on entrepreneurial activity.
An important feature affiliate is considered to have dependent relations between physical or legal entity affiliated with the individuals or legal entities.
This dependence manifests itself in the following cases:
- if it belongs to a natural or legal person of a certain percentage of the Charter capital of the legal entity with the right to vote in governing body of
- if a physical person or a legal entity, a legal status (for example, the status of the Director or Fund Manager) has the right to give obligatory for execution instructions
- if there are between individuals of certain family relationships (kinship)
Affiliated person the legal person
Affiliates legal. faces can be:
- member of the Supervisory Board or Board of Directors, member of the collegial Executive body
a physical person or legal entity entitled to dispose of more than 20% of the total number of votes referred by the voting shares or constituting authorized capital contribution from the share of the legal entity
- a legal entity, if it is a member of Fig (financial industrial group).
"The procedure of affiliate" - the process of joining one company to another structure without changing the owner.In this case, it is affiliated with can also be members of the Board of Directors, members of collegial management bodies of FPG and persons-members of the FPG, with the authority of the Executive bodies
Affiliated persons physical persons leading business activity can be:
- persons who belong to the same group of persons as the natural person
- a legal entity where the individual entity is entitled to dispose of 20% of the total number of votes referred by the voting shares or constituting authorized capital contribution from the share of a legal entity.
Joint-stock companies regularly provide information about its affiliates in Federal Commission on securities. Also, any joint stock company is obliged to prepare lists of their affiliated persons to the annual publication in mass media. In addition, the lists should specify the types and amounts owned to affiliated persons of the shares.