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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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