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.