Parent company guarantee

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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

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