Affiliate and Associated Company Law and Legal Definition

According to 7 CFR 17.2 [Title 7—Agriculture; Subtitle A -- Office of the Secretary of Agriculture; Part 17 -- Sales of Agricultural Commodities made available under Title I of the Agricultural Trade Development and Assistance Act of 1954, as Amended], the term affiliate and associated company means “any legal entity which owns or controls, or is owned or controlled by, another legal entity. For a corporation, ownership of the voting stock is the controlling criterion. A legal entity is considered to own or control a second legal entity if –

(1) The legal entity owns an interest of 50 percent or more in the second legal entity; or

(2) The legal entity and one or more other legal entities, in which it owns an interest of 50 percent or more, together own an interest of 50 percent or more in the second legal entity; or

(3) The legal entity owns an interest of 50 percent or more in another legal entity which in turn owns an interest of 50 percent or more in the second legal entity.”