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 ?
DBRS does not expect positive rating actions on CU's ratings because they are largely constrained by CUI's ratings; however, the following factors, if they occur, could pressure the Holdco's ratings: (1) a material increase in consolidated and non-consolidated leverage, (2) a substantial increase in non-regulated operations (which DBRS deems unlikely, given the current business strategy) or (3) adverse changes in regulation in Alberta that negatively affect CUI's ratings.
These factors more than offset NEP's relative high Holdco leverage and weaker asset composition owing to a larger concentration of wind assets.
Where the Holdco is located in a non-EU jurisdiction that does not have a treaty (containing a non-discrimination article) with the U.K., the arguments for the availability of cross-border group relief may be more difficult than in some of the other identified situations.
As a result of the transaction, each share of MMDM common stock will convert into the right to receive one share of Holdco and each warrant to purchase MMDM common stock will convert into a warrant to purchase an equal number of shares of Holdco on the same terms as the MMDM warrants.
In addition, the company mentioned that Holdco has applied for listing on the Nasdaq Capital Market to be effective at the time of the completion of the business combination, which is subject to certain conditions.
Altamont Capital Partners has made a majority equity investment into Access Holdco Management, LLC, led by founder Michael McMenamin, who will remain president and CEO, as well as a significant shareholder, the company said.
Hawaiian Telcom Holdco, Inc., headquartered in Honolulu, is Hawaii's provider of integrated communications solutions for business and residential customers.
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.
"The financial partner's investment in HoldCo will in effect reduce DOF's indirect ownership in DOFSUB from 57.05% to 50% in exchange for gross proceeds of approximately NOK380m in cash," DOF said.
A client often will contact a tax professional, seeking to efficiently invest in various foreign business opportunities by forming a foreign corporation to serve as an investment platform (Holdco).
Holding Company (Holdco) forms a consolidated group by the acquisition of 100 percent of the shares of old U.S.
Mastercard Incorporated and Earthport PLC today published a Rule 2.7 announcement under the City Code on Takeovers and Mergers regarding an agreement on the terms of a recommended all cash offer by Mastercard UK Holdco Limited, an indirectly, wholly-owned subsidiary of Mastercard, for the entire issued and to be issued ordinary share capital of Earthport.