central functions

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Seeking truth

Member
Chinese
Hello,

I have another confusing sentence from a service agreement.

Each Subsidiary's share in the aggregate amount of the costs of central functions that is subject to allocation is calculated in accordance with the conditions set out below.

My confusion concerns with the phrase "central functions".
Does it mean "core functions", or "centralized functions", or "functions from the parent company or headquarter"?

I understand "function" to be a department with controlling authority to the whole compamy, like financial department, personnel & organization department, etc.

In contrast, the agreement also often mentions about the word "local" to refer to its subsidiaries.

In the agreement, it mentions the company provides servies to its many subsidiaries.

Thank you in advance.
 
Last edited:
  • lingobingo

    Senior Member
    English - England
    I don’t know exactly what those central functions are (things like group indemnity insurance or a central computer system, perhaps?), but the point is that the cost of them has to be shared among the subsidiaries, who all benefit from them.
     

    Orble

    Senior Member
    Australian English
    I would tend to think it meant “core functions central to the company’s/group’s operations” but, as Lingobingo implies, you would need to read and understand the whole agreement to know precisely what is meant in this context (and I don’t want to do that!;)). Perhaps it is a defined term within the document which would make it easier.
     

    Seeking truth

    Member
    Chinese
    Thank you. I think I basically understand it. I just want to make sure if "central" refers to the location or to the nature.
    The agreement does mentions several departments or functions whose costs are to be shared by subsidaries. But here the point is the word "central".
     

    lingobingo

    Senior Member
    English - England
    I think central refers to the fact that these are functions controlled centrally, i.e. by Head Office. It might mean training programmes, building maintenance, sales software, that sort of thing.
     

    dojibear

    Senior Member
    English - Northeast US
    This is a legal document. Therefore "central functions" should be defined somewhere, in writing. There is no standard English definition that all companies must follow.

    This is a vague term. If you want a vague idea of some of the possible meanings, we can suggest some of them.

    But if you need to know what it means in this document, you must find it defined elsewhere in the same document, or ask the company.
     
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