Dear Larry thank you for your inquiry. A subsidiary is a company whose voting stock is more than 50% controlled by another company (usually referred to as the parent company). As long as the parent company has more than 50% of the voting stock in the subsidiary, it has control.
International corporations usually set up foreign subsidiaries since the company under which the subsidiary is incorporated must adhere to the laws of the country in which the subsidiary operates, (the local laws do not apply to the parent Corporation) but the parent company still carries the foreign subsidiary's financials on its books, meaning all revenue is reported on the consolidated financial statements.
Essentially Yours Industries (International) Limited, located in Hong Kong, is a subsidiary of EYI Industries Inc., incorporated on December 6, 2005 and was set up in order to facilitate EYI’s expansion throughout Southeast Asian countries.
In lieu of a licensing fee, Mach 3 will receive 5% of EYI INT's authorized share capital upon completion of EYI INT's increase in authorized share capital to 30,000,000 shares.
Regards,
AGORACOM Investor Relations
