holding company

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Holding company

A corporation that owns enough voting stock in another firm to control management and operations by influencing or electing its Board of Directors.

Holding Company

A company that owns enough stock in another company to control its operations. That is, the holding company can appoint the board of directors, set policies, and generally operate as the sole owner of another company, even if it does not actually own 100% of the stock. Some holding companies do not have operations of their own; that is, they exist simply to own and control other companies. In the United States, if a holding company owns at least 80% of the stock in another company, dividends paid to that holding company are not taxed. See also: Double Taxation.

holding company

A type of parent company that exists primarily to exercise control over other firms. The control is exercised through ownership of a majority of the controlled firm's shares. Earnings of the holding company are derived from earnings of the controlled firms, which pay dividends on the shares. Compare subsidiary. See also operating unit.

Holding company.

By acquiring enough voting stock in another company, a holding company, also called a parent company, can exert control over the way the target company is run without actually owning it outright.

The advantages of this approach, provided that the holding company owns at least 80% of the voting shares, are that it receives tax-free dividends if the subsidiary prospers and can write off some of the operating losses if the subsidiary falters.

Because of its shareholder status, however, the holding company is insulated to some extent from the target company's liabilities.

holding company

a JOINT-STOCK COMPANY that controls another company or companies. Ownership may be complete (100%) or partial (ownership of 50%+ of the voting shares in the company). Such ownership confers powers to control the policies of SUBSIDIARY COMPANIES.The holding company will report the accounting results of these subsidiary companies as part of the accounting results for the group of companies. In addition, the holding company may own between 20% and 50% of the voting shares of an ASSOCIATED COMPANY, which will continue to produce its own annual accounts and retain a degree of independence, though subject to the influence of the holding company.

Holding companies are most frequently used as a means of achieving diversified or conglomerate growth, with the firm operating separate companies in different lines of production activity, but with each company subject to varying degrees of centralized control by the parent company. See CONSOLIDATED ACCOUNTS, HFORM. DIVERSIFICATION.

holding company

a company that controls another company or companies. Ownership may be complete (100%) or partial (ownership of 51%+ of the voting shares in the company). Such ownership confers powers to control the policies of subsidiary companies. The holding company will report the accounting results of these subsidiary companies as part of the accounting results for the group of companies.

Holding companies are most frequently used as a means of achieving diversified or conglomerate growth, with the firm operating separate companies in different lines of production activity but with each company subject to varying degrees of centralized control by the ‘parent company’. See DIVERSIFICATION.

holding company

A company that owns or controls another company.
References in periodicals archive ?
The funds to be received by BT Holdco from the transaction will be distributed to Bombardier and Bombardier intends to use the proceeds for general corporate purposes.
The New Holdco Notes have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), and, unless so registered, may not be offered or sold in the United States absent registration or an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and other applicable securities laws.
If Forms 940 and 941 have been filed by Parent under Parent's historic EIN, and a Form 940 or 941 is now filed under the name New HoldCo using Parent's historic EIN, the IRS might reject the return because the name and EIN do not match the information in IRS records.
The commitments Holdco has made to hospital employees and their families in the TA are also far superior to those made by Prime," said Callaci.
that includes a non-discrimination article, there may be arguments available similar to those identified above for the US Holdco.
Mnuchin, chairman of IMB Holdco LLC, will join CIT Group Inc.
The principal steps of the merger, which have to be approved by shareholders, are that Iberia will hive down its assets and liabilities to a new operating subsidiary which will continue to operate its business; BA Holdco will be inserted above British Airways by means of a UK court approved scheme of arrangement; and Iberia and BA Holdco will merge with IAG through a Spanish law merger, which will result in Shareholders of British Airways and Iberia receiving shares in IAG, which will then own the two airlines.
Unless otherwise indicated in a specific example below, assume (1) the client's objective is to reduce or defer his or her income tax liability to the extent legally permissible, (2) he or she owns 100% of Holdco, (3) Holdco is initially capitalized solely with cash, and (4) Holdco is incorporated under the laws of a low-tax jurisdiction.
In other words, since Holdco's dividend-paying potential is increased by the amount of taxes avoided by offsetting the losses of Lossco against Holdco income, Holdco's exempt surplus should be increased by the amount of tax savings.
New Holdco has been informed that sufficient consents were delivered in the Consent Solicitation to satisfy the required consent threshold under the PIK Indenture (as defined in the Offering Memorandum) to approve the Proposed Amendments.
HoldCo") is in compliance with the requirements; and, therefore, if the ordinary shares of HoldCo are to be listed, the ordinary shares of HoldCo will continue to be listed definitively without entering a grace period.
Further to the announcement made by Castle HoldCo 4, Ltd.