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Holding Company


#1

A company that holds more than 50% of the shares in one or more subsidiary company.

The definition of a Holding Company as per the Companies Act 2006 (sec. 1159) is as follows:

  • The parent company holds more than 50% of the voting rights in the subsidiary.
  • The parent company is a member of the subsidiary company and has the power to appoint and remove directors from the board.
  • The parent company is a member of the subsidiary and has controlling interest in the subsidiary company.

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