With the arrival of capitalism in our country, various clever words have come into common use of a simple person, the meaning of which is not clear to everyone.
We propose to understand what affiliate means and who such affiliates are.
Word affiliated comes from the verb affiliation (English affiliation - "connection, connection" and late lat. filialis - "filial").
In other words, to affiliate is to accept as a branch or related entity.
An affiliated company is a branch company, a subsidiary company that is controlled, or one with which there are connections.
An affiliate is an individual or legal entity (investor) that can directly influence the company's operations.
On the Internet, you can find the spelling of "affiliated persons", which is not entirely correct.
So who are the affiliates? These are members of the board of directors, persons who have the right to control more than 20% of the total number of votes attributable to voting shares, investors.
How to remember
To memorize what affiliate means, read the simple example below.
You know that in your city a famous businessman Ivanov owns a chain of Chamomile stores. After a while, a new network with the name "Lily" appears.
And your friend says:
- Finally, at least some kind of competition has appeared, prices may become cheaper.
And you are well aware that this is the same Ivanov launched a new network under a different name, so you thoughtfully notice:
- No, my friend, because this is Ivanov's affiliated company.