Distinguish between the following: 'Associate company' and 'subsidiary company'.

Associate Company As per Section 2(6) of 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 to section 2(6) provides that 'significant influence' means control of at least twenty percent of total share capital, or of business decisions under an agreement. Subsidiary Company Section 2(87) of Companies Act, 2013 provides that subsidiary company or subsidiary, in relation to any other company (that is to say the holding company), means 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 share capital either at its own or together with one or more of its subsidiary companies: Provided that such class or classes of holding companies, shall not have layers of subsidiaries beyond the prescribed limit. (Proviso is yet to be notified) Explanation - For the above purpose, - a company shall be deemed to be a subsidiary company of the holding company even if the control referred to in sub-clause (i) or sub-clause (ii) is of another subsidiary company of the holding company; the composition of a company's Board of Directors shall be deemed to be controlled by another company if that other company by exercise of some power exercisable by it at its discretion can appoint or remove all or a majority of the directors; the expression 'company' includes any body corporate; 'layer' in relation to holding company means its subsidiary or subsidiaries.