What are holding and subsidiary companies?

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1 Answers

Holding company:

  • A company holds more than half of the share capital of another company.
  • Such a company may have the power to appoint a director of another company.
  • It has the power to remove directors of another company.

Subsidiary company:

  • Such companies are controlled by holding companies.
  • Holding company purchases more than half of the total share capital of the Subsidiary company.
  • Holding Company has the power to appoint or remove all or a majority of its directors.
  • A subsidiary company is just the opposite of a Holding company.
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