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holding company

   Also found in: Dictionary/thesaurus, Medical, Legal, Encyclopedia, Wikipedia, Hutchinson 0.04 sec.
Holding Company
A parent corporation that owns enough voting stock in another corporation to control its board of directors (and, therefore, controls its policies and management).

Notes:
A holding company must own at least 80% of voting stock to get tax consolidation benefits, such as tax-free dividends.


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 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.


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has resolved to begin preparations for a shift to a pure holding company system with a target date of April 1, 2007 at the meeting of the Board of Directors held on July 26.
The tax law is not clear as to whether the acquisition of the assets of a holding company by its less-than-80%-owned subsidiary satisfies the continuity-of-business-enterprise (COBE) requirement, a necessary element to qualify the acquisition as a tax-free reorganization.
10) Subpart J governs the conduct of merchant banking investment activities by financial holding companies as permitted under section 4(k)(4)(H) of the Bank Holding Company Act (12 U.
 
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