The concept of "affiliated company" does not have a unified definition in the law, and its meaning will vary according to different laws, regulations or standards. In general, however, an affiliate usually refers to a company that has a degree of control or influence over another company, or a common controller between the two companies. This control or influence may arise from the ownership structure, but also from the terms of contracts or other forms of arrangements.
For example, assuming Company A owns more than 50% of Company B, we would generally consider Company B to be an affiliate of Company A. Because in this case, company A has enough voting power to influence company B's operating decisions. Conversely, Company B can also be considered an affiliate of Company A.
As another example, assuming that Company A and Company B are controlled by the same parent company C, Company A and Company B will generally be considered as affiliated companies. Because in this case, parent company C has the ability to influence or control the operating decisions of company A and company B.
In addition, the concept of an affiliate may also vary depending on a particular context or purpose. For example, in antitrust law, two companies may be considered affiliates if the relationship between them is sufficient to enable one company to exercise significant influence over the other company's business decisions, even if they do not have an equity relationship between them.
With regard to the concept of affiliated companies, there are some other factors to consider, such as transaction relationship, personnel crossing, etc. Two companies may also be considered related companies if there is a frequent transactional relationship between them, or if there is cross-employment between their senior managers.