Parent company guarantee

A parent company guarantee (PCG) is a guarantee by a parent company of a contractor’s performance under its contract with its client, where the contractor is a subsidiary of the parent company.[1]

It is mandatory for all the companies to mention about the guarantees granted as a note in their accounts because it is a risk for the company. The parent/holding company can refuse to renew the guarantee.

References
  1. Loosemore, M. (2006). Risk Management in Projects. Tayor & Francis. p. 173. ISBN 978-0-415-26056-5. Retrieved 26 June 2023.


This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.