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An NHS organisation sets up a wholly owned management company - essentially for VAT advantages.

Staff employed by the company effectively manage all security tasks including CCTV operation and related tasks for the organisation, but are subject to all of the organisations policies & procedures, and get all guidance and support from the organisations IG team and DPO, together with approval of any procedures and processes. 

There are considerable practical difficulties (contract, day to day control, decision making, accountability etc.) in regarding the company, although it is technically an independent legal entity, as either a controller or processor. Is there any reason why the organisation cannot simply regard the company as neither, but as a "person who, under the direct authority of the controller or processor, is authorised to process personal data" - in effect a 'corporate' employee? 

That certainly seems to me a better description of the relationship - the company does as its told like any employee but has a measure of independent action in daily tasks.

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