holding company

(redirected from Holding firm)
Also found in: Dictionary, Thesaurus, Legal, Idioms, Encyclopedia.

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 holding firms ended modestly higher while the financial, industrial, mining/oil and property counters all slipped.
For the full year to March 31, the holding firm expects a group net profit of 85 billion yen, down 24.
The supervisory board of the joint holding firm has also got together in Amsterdam for its constitutive meeting as part of the completion.
The president of the holding firm will be selected in the future.
Dai-ichi Mutual was also considering buying Resona common shares from the government to raise its stake in the bank holding firm to about 5 percent from 0.
The holding firm plans to complete the debt issue early next year.
Taipei, June 19, 2009 (CENS) -- Investment by a subsidiary venture capital firm exceeding NT$50 million in value in an unlisted non-financial firm should be incorporated into the investment quota of its parent financial holding firm in the unlisted company, set at 15% of the financial holding firm's total investment, said the Financial Supervisory Commission (FSC) yesterday (June 18).
5 percent stake in the bank holding firm, the sources said.
its holding firm, that it is repaying a 533 billion yen part of its debts to the government.
In a group earnings report for the April-September period, the holding firm, which controls Chuo Mitsui Trust & Banking Co.
shareholders on Wednesday endorsed a motion to create a holding firm for the railway company and other Seibu group firms, thus reducing the group's control by 71-year-old Yoshiaki Tsutsumi, once listed by Forbes magazine as the world's richest man.
The stock retirement plan is therefore intended to respond to concerns among some inventors that if the holding firm keeps these shares, they might be transferred to a third party to fend off a hostile takeover attempt or sold to the market, the paper said.