A holding company is a corporation set up to supervise group companies by holding stakes in the firms. Of the two types of holding company, one type distances itself from business activities while the other conducts business on its own. A holding company can disperse business risks, thus facilitating corporate mergers and acquisitions within the group. The Japanese government had banned holding companies under the Anti-Monopoly Law in an attempt to prevent the repeat of market monopolies often enjoyed by conglomerates before World War II. The ban was lifted in 1997 to make Japanese companies more competitive globally. Daiei Inc. became the first firm to set up a holding company.
A company with participation in other firms for the purpose of financial investment and control. In order to constitute a holding, the parent company should own enough voting shares to be able to control its subsidiaries' management and operations. The holding’s subsidiaries frequently operate in different lines of business. Français: Société de contrôle, Société de participations, Société-faîtière, Société-mère Español: Sociedad tenedora, sociedad holding
(1) any corporation, partnership, trust, association, or organized group of persons owning or controlling 10% or more of the outstanding voting shares of a company. (2) a corporation that exercises control over other companies through title to their securities, primarily voting issues.
A company whose principal assets are the securities it owns in companies that actually provide goods or services. A holding company enables one corporation and its directors to control several companies by holding a large stake in the companies.
A holding company has control over one or more firms through ownership of the latter's stocks. It may or may not produce marketable goods and services, but is concerned with control over the managerial, financial, marketing, and other functions of the enterprises in which it has an ownership stake.
Company that holds interests in other legally independent companies. These investment companies are closed-end investment vehicles similar to funds. However, they are not subject to the Investment Fund Act and therefore have more freedom in selecting their investments.
Usually means a corporation (parent company) that directly or indirectly owns a majority or all the voting securities (such as common stock) of one or more electric utility companies that are located in the same or contiguous states. The Securities Exchange Commission (SEC), as administrator of the Public Utility Holding Company Act of 1935, defines a holding company as "any company which ... owns, controls ... ten percent or more of the outstanding voting securities of a public utility company."
A corporation organized to hold the stock of other corporations. It is in a position to control or materially influence the management of a corporation or company by the fact that it has an ownership interest in the company.
A company that confines its activities to owning stock in and supervising management of other companies. The Securities and Exchange Commission, as administrator of the Public Utility Holding Company Act of 1935, defines a holding company as "a company which directly or indirectly owns, controls or holds 10 percent or more of the outstanding voting securities of a holding company" (15 USC 79b, par. a (7)).
A company that owns stock in and manages the activities of other companies. To gain tax advantages, the holding company must own 80% of the voting stock of the other company. See also personal holding company.
Typically, a company that does not engage in business or have operations but owns securities in other corporations. Usually the holding company owns all or nearly all of the ownership of the other entities. Incorporators The person or persons who perform the administrative act of signing the articles to commence a corporation. This is not to be confused with the "promoters" of the business.
A company that usually confines its activities to owning stock in, and supervising management of, other companies. A holding company usually owns a controlling interest in the companies whose stock it holds. In order for a corporation to gain the benefits of tax consolidation, including tax free dividends and the ability to share operating losses, the holding company must own 80% or more of the voting stock of the corporation.
'Parent' company with controlling interest in subsidiary company. A company which often exists only to hold shares in a group of subsidiary companies, and which holds over 50% of the ordinary shares of those companies. See 'Parent Company'.
A company with (usually) no active business operations, owning passive investments in assets such as real property, shares in publicly-held companies, and shares in privately-held operating companies. The earnings generated by a holding company (in the form of rent or dividends, for example) normally are of less significance from a value standpoint than is the appreciating value of the underlying investments themselves.