a company, which has a controlling influence on another undertaking. Dominant influence is defined as effective control with something, with or without the legal rights that normally signify control. Thus, major decisions may be taken in accordance with the wishes of the dominant party whether expressed or perceived. Actual exercise of dominant influence implies an effect in practise and includes both the active direction of the operating and financial policies of another undertaking, and passive influence derived from the holding of a legal or effective power to veto. In specific context (4th Council Directive 78/660, Article 57) a synonym for parent company.