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 facts of Letter Ruling 201341004 are distinguishable from the above letter rulings because (1) the taxpayer did in fact distribute all its ownership in Controlled and (2) the hook stock shareholder was a subsidiary of the parent corporation, not the parent corporation itself.
g) The parent corporation cannot recover Division III GST because the parent corporation is not GST-registered.
parent corporation ships goods to Czechoslovakia (Subsidiary #1).
In Pennsylvania, the issue has arisen whether the corporation's share of the excess of the amount that was incurred to purchase the taxpayer's parent corporation over the historic cost of the parent corporation's assets should be included in computing the taxpayer's capital stock tax liability.
The court held that the Delaware corporation was actually doing business in Florida through its parent corporation (which functioned as its agent for these purposes), finding that "but for" the parent's activities on behalf of its subsidiary, the subsidiary could not have "otherwise conducted any business or earned any income.
In the first situation, a foreign parent corporation deposited funds in a bank located in a different foreign country.
337(a)provides, in general, that when a subsidiary distributes assets to its parent corporation in a complete liquidation no gain or loss will be recognized.
The parent corporation of the acquiring group becomes the common parent corporation of the new, larger affiliated group.
Under normal circumstances, foreign sales corporations (FSCs) should pay regular annual dividends to their parent corporations.
is the parent corporation for Jefferson Federal Bank, which is headquartered in Morristown, Tennessee.
In a number of cases, a foreign parent corporation will charge interest on advances to its U.
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