2.21 Definition:
The sector non-financial corporations (S.11) consists of institutional units
whose distributive and financial transactions are distinct from those of their
owners and which are market producers (see paragraphs 3.31., 3.32. and 3.37.), whose principal activity is the production of goods and non-financial
services 
.
2.22
The sector non-financial corporations also includes non-financial
quasi-corporations.
2.23
The term 'non-financial corporations' denotes all bodies recognised as independent legal entities which are market
producers and whose principal activity is the production of goods and
non-financial services.
The institutional units covered are the following:
Quasi-corporations must keep a complete set of accounts and are operated as if
they were corporations. The de facto relationship to their owner is that of a
corporation to their shareholders.
Thus non-financial quasi-corporations owned by households, government units or
non-profit institutions are grouped with non-financial corporations in the
non-financial corporations sector.
The existence of a complete set of accounts, including balance sheets, is not
a sufficient condition for market producers to be treated as
quasi-corporations. Therefore, partnerships and public producers, other than those included under
2.25
The sector non-financial corporations also includes all notional resident
units (see paragraph 2.15) which, by convention, are treated as if they were quasi-corporations.
2.26
Control over a corporation is defined as the ability to determine general
corporate policy by choosing appropriate directors, if necessary.
A single institutional unit (another corporation, a household or a government
unit) secures control over a corporation by owning more than half the voting
shares or otherwise controlling more than half the shareholders' voting power. In addition, government secures control over a corporation as a
result of special legislation decree or regulation which empowers the
government to determine corporate policy or to appoint the directors.
In order to control more than half the shareholders' voting power, an institutional unit needs not own any of the voting shares
itself. A corporation C could be a subsidiary of another corporation B in which a
third corporation A owns a majority of the voting shares.
Corporation C is said to be subsidiary of corporation B when: either
corporation B controls more than half of the shareholders' voting power in corporation C or corporation B is a shareholder in C with the
right to appoint or remove a majority of the directors of C.
2.27
The sector non-financial corporations is divided into three sub-sectors:
2.24
The term 'non-financial quasi-corporations' denotes all bodies without independent legal status which are market
producers principally engaged in the production of goods and non-financial services and
meet the conditions qualifying them as quasi-corporations (see paragraph2.13f).
;