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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.

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.

Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

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.

Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005

holding company

A company that owns or controls another company.
The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
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parent companies matched in the three-way link had a large positive balance in charges for the use of intellectual property in 2010.
In addition, the regulators will be obligated to place curbs on the exchange of information on customers between the banking subsidiaries and their parent companies.
The somewhat surprising short-term orientation of Chinese parent companies on profits forces some US IJV directors to manage the joint venture differently than they would like to.
parent companies accounted for 68 percent of the worldwide employment of U.S.
parent companies and their foreign affiliates and (2) a survey that covered the operations of U.S.
Observation: One question that begs an answer, and to which at present there is none, is whether "keep well" agreements (which are moral - but not legally enforceable - obligations by parent companies to make sure subsidiaries pay their debts) qualify as guaranteed debt.
The court rejected the applicants' challenge to the amount of the fine imposed on the subsidiary, Trioplast Wittenheim, claimed to have been illegally calculated since it was less than the cumulative amounts of those imposed on the current and previous parent companies. The EU General Court held that this is conceivable in the case of an infringement by a subsidiary having successively belonged to several parent companies during the infringement period.
parent companies and their foreign affiliates, and (2) the operations of U.S.
parent companies increased 1.1 percent, following a 0.6-percent increase.
In particular, it removes withholding taxes on payments of dividends between associated companies in different Member States, thus preventing double taxation of parent companies on the profits of their subsidiaries.
A Commission investigation found the joint venture, European Hydro Power (EHP), "would not restrict effective competition in the Austrian and German power markets, as the market position of the parent companies will not be altered appreciably".
The Commission also agreed to the parent companies jointly controlling the venture and each owning 50% of its shares.