Cash in Subsidiary

General Discussions about new beta versions of Capitalism Lab
JasonLJJ
Level 3 user
Posts: 75
Joined: Sat Dec 22, 2012 3:24 pm

Cash in Subsidiary

Post by JasonLJJ »

Hey Guys!

One of the problems I keep on facing is that my subsidiaries often hoard massive amounts of cash (sometimes exceeding their market cap) and is no way for me to move the money back up to my MainCo. Is there going to be an update or a method which would allow me to change the dividends of my subsidiaries?
ystino
Posts: 7
Joined: Thu Jun 14, 2012 12:35 pm

Re: Cash in Subsidiary

Post by ystino »

I really can't understand the advantages of having subsidiaries except for the following:
1. Stock dividends
2. Ability to sell the stock later
3. Using the subsidiaries' cash to purchase stock in other companies
4. Ability to issue stock to the parent company directly

That's about it.

We need more control such as:
1. Changing the subsidiaries' strategies (retail, manufacturing, real estate...etc.) - So we can have different companies each focused on a certain segment. Then, we should have further control over the markets (product class, mega class, location...etc.) they penetrate.
2. We should also control how much of the profit % is sent to the parent company.
3. Control over firing and hiring the COO, CMO and CTO is also important. Why should I be stuck with the original founder of the company?
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