A holding company is a company whose primary business is holding a controlling interest in the securities of other companies.
In some jurisdictions around the world, holding companies are called parent companies, which, besides holding stock in other companies, can conduct trade and other business
“ Singapore The parent subsidiary company relationship is defined by Part 1, Section 5, Subsection 1 of the Companies Act, which states: 5.—(1) For the purposes
of this Act, a corporation shall, subject to subsection (3), be deemed to be a subsidiary of another corporation, if — (a) that other corporation — (i) controls the composition of the board of directors of the first-mentioned corporation;
or [Act 36 of 2014 wef 01/07/2015] (ii) controls more than half of the voting power of the first-mentioned corporation; or (iii) [Deleted by Act 36 of 2014 wef 01/07/2015] (b) the first-mentioned corporation is a subsidiary of any corporation
which is that other corporation’s subsidiary United Kingdom In the United Kingdom, it is generally held that an organisation holding a ‘controlling stake’ in a company (a holding of over 51% of the stock) is in effect the de facto parent
company of the firm, having overriding material influence over the held company’s operations, even if no formal full takeover has been enacted.
(A holding below 50% could be sufficient to give a parent company material influence if they are the largest individual shareholder or if they are placed in control of the
running of the operation by non-operational shareholders.
Once a full takeover or purchase is enacted, the held company is seen to have ceased to operate as an independent entity but to have become a tending subsidiary of the purchasing
company, which, in turn, becomes the parent company of the subsidiary.
Holding companies reduce risk for the shareholders, and can permit the ownership and control of a number of different companies.
) Company law In the United Kingdom, the term holding company is defined by the Companies Act 2006 at section 1159.
Its purpose is to own stock of other companies to form a corporate group.
Personal holding company In the United States, a personal holding company is defined in section 542 of the Internal Revenue Code.
 Holding companies are also created to hold assets such as intellectual property or trade secrets, that are protected from the operating company.
 By country Australia The parent company–subsidiary company relationship is defined by Part 1.2, Division 6, Section 46 of the Corporations Act 2001 (Cth), which
states: A body corporate (in this section called the first body) is a subsidiary of another body corporate if, and only if: (a) the other body: (i) controls the composition of the first body’s board; or (ii) is in a position to cast, or
control the casting of, more than one-half of the maximum number of votes that might be cast at a general meeting of the first body; or (iii) holds more than one-half of the issued share capital of the first body (excluding any part of that
issued share capital that carries no right to participate beyond a specified amount in a distribution of either profits or capital); or (b) the first body is a subsidiary of a subsidiary of the other body.
When an existing company establishes a new company and keeps majority shares with itself, and invites other companies to buy minority shares, it is called a parent company.
United States Banking Further information: Bank holding company After the financial crisis of 2007–2008, many U.S. investment banks converted to holding companies.
Sometimes, a company intended to be a pure holding company identifies itself as such by adding “Holding” or “Holdings” to its name.
Parent company A parent company is a company that owns enough voting power in another firm (or subsidiary) to control management and operations by influencing or electing
its board of directors.
 Utilities The Public Utility Holding Company Act of 1935 caused many energy companies to divest their subsidiary businesses.
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