holding company

A corporation that controls one or more *subsidiary organizations. Control can be effected through either a majority of *common stock voting rights or through dominance influence on a subsidiary’s management or operating policies. Holding companies can be distinguished from *parent organizations on two grounds: (i) the term holding company is frequently used to designate the ultimate parent entity in an organization, rather than an intermediary company that both controls other entities and is itself controlled by another organization; and (ii) the term holding company is often used for a parent organization that exists principally to hold shares (and also perhaps to employ senior management and to perform head office services), rather than to carry on regular trading or other operations. However, the terms holding company and parent organization are often used interchangeably.

Auditor's dictionary. 2014.

Look at other dictionaries:

  • holding company — see company Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. holding company …   Law dictionary

  • holding company — holding companies N COUNT A holding company is a company that has enough shares in one or more other companies to be able to control the other companies. [BUSINESS] ...a Montreal based holding company with interests in telecommunications, gas and …   English dictionary

  • holding company — n. (Finance) A company that controls other independently incorporated companies by ownership of most or all of their stock, but does not directly control the daily operations of those companies. [PJC] …   The Collaborative International Dictionary of English

  • holding company — holding ,company noun count a company that owns the majority of the SHARES in another company …   Usage of the words and phrases in modern English

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  • holding company — holding .company n a company that completely or partly owns other companies, as well as doing business itself …   Dictionary of contemporary English

  • holding company — ☆ holding company n. a corporation organized to hold bonds or stocks of other corporations, which it usually controls …   English World dictionary

  • Holding company — A holding company is a company that owns part, all, or a majority of other companies outstanding stock. It usually refers to a company which does not produce goods or services itself, rather its only purpose is owning shares of other companies.… …   Wikipedia

  • holding company — Finance. a company that controls other companies through stock ownership but that usually does not engage directly in their productive operations (distinguished from parent company). [1905 10] * * * Corporation that owns enough voting stock in… …   Universalium

  • holding company — 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 …   Black's law dictionary

  • 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. Bloomberg Financial Dictionary A company which controls one or more subsidiary companies in which… …   Financial and business terms

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