Give different subsidiaries the level of oversight they need. Explore a risk-based approach to group governance, covering entity tiering, board arrangements, delegated authority and reliable information.
Free PDF · 8 pages · Practical guide
By Beyond Governance
- Consider how to tier entities by risk and significance
- Review the responsibilities of subsidiary boards and directors
- Use ten priorities to structure your next steps
Proportionate governance across the group
A group’s subsidiaries can differ substantially in their activities, size and exposure to risk. Applying the same arrangements to every entity can make it harder to direct attention where it is most needed.
Subsidiaries and the Role of Governance explores how a group can develop a more proportionate framework. It connects entity tiering with board structures, delegation, director development and information management. The guide closes with ten priorities for company secretaries leading this work.
What is inside
A framework for the group
Consider the components of a subsidiary governance framework and how they connect with the parent company’s expectations.
Risk and entity tiering
Explore how differences in risk and significance can influence the level of attention and oversight each subsidiary receives.
Boards and delegated authority
Review board composition, decision-making responsibilities and the relationship between group authority and subsidiary governance.
Director development and information
Consider the training directors need, the reliability of entity data and how disclosure and reporting are coordinated.
Putting the framework into practice
Read about group engagement and management arrangements, followed by ten priorities for company secretaries developing the approach.
Who the guide is for
Group company secretaries, subsidiary governance teams, legal leaders and directors reviewing how oversight works across a portfolio of entities.
Why entity tiering matters
The guide considers tiering subsidiaries according to their risk and significance. That assessment can inform which entities need more board attention, support or reporting, and where a simpler arrangement may be appropriate.
Why download the guide
It brings the main components of subsidiary oversight together, helping you examine how they work as a whole. The final priorities provide a starting point for deciding what to review with colleagues across the group.
How to use it
Compare the guide with your current group framework. Identify where entity risk, responsibilities or information are unclear, then use the ten priorities to organise further discussion.
Download Subsidiaries and the Role of Governance
Review whether your subsidiary governance arrangements reflect the needs of your group.
Related resources
A Guide to Choosing Subsidiary Management Software
Balancing Authority and Autonomy in Subsidiary Governance
Further support
Explore our subsidiary governance support for help with the work across your entity portfolio.
