Distinguish between the following: Subsidiary company Vs. Associate company.

As per Section 2(87) of the Companies Act, 2013, the Subsidiary Company is a company in which the holding company: controls the composition of the board of directors or exercises or controls more than one-half of the total voting power either at its own or together with one or more of its subsidiary companies. As per Section 2(6) of the Companies Act, 2013, Associate company in relation to another company, means a company in which that other company has a significant influence, but which is not a subsidiary company of the company having such influence and includes a joint venture company. Explanation – For the purpose of this clause: the expression 'significant influence' means control of at least twenty percent. of total voting power, or control of or participation in business decisions under an agreement; the expression 'joint venture' means a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement.