Untitled Deck Flashcards
What is a holding company?
A holding company is a company that is another company’s holding company if that other company is its subsidiary.
What is a subsidiary company?
A subsidiary company is a company in which the holding company controls the composition of the board or exercises more than one-half of its voting securities.
What does it mean to control the composition of the board?
It means that the holding company can appoint or remove all or a majority of the directors.
Can a subsidiary company itself be a subsidiary of another holding company?
Yes, a company can be deemed a subsidiary of the holding company even if the control is of another subsidiary company.
What is meant by ‘layer’ in relation to a holding company?
‘Layer’ refers to its subsidiary or subsidiaries.
What does the term ‘company’ include?
The term ‘company’ includes any body corporate.
