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Holding Company
(redirected from Holdco)

   Also found in: Financial, Encyclopedia, Wikipedia, Hutchinson 0.02 sec.

A corporation that limits its business to the ownership of stock in and the supervision of management of other corporations.

A holding company is organized specifically to hold the stock of other companies and ordinarily owns such a dominant interest in the other company or companies that it can dictate policy. Holding companies must comply with the federal antitrust laws that proscribe the secret and total acquisition of the stock of one corporation by another, since this would lessen competition and create a Monopoly.


holding company n. a company, usually a corporation, which is created to own the stock of other corporations, thereby often controlling the management and policies of all of them.



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Unless otherwise indicated in a specific example below, assume (1) the client's objective is to reduce or defer his or her income tax liability to the extent legally permissible, (2) he or she owns 100% of Holdco, (3) Holdco is initially capitalized solely with cash, and (4) Holdco is incorporated under the laws of a low-tax jurisdiction.
The HOLDCO should retain your investments such as excess cash, real estate, and all non-operating assets.
a division of Genstar Capital, announced it has entered into a definitive agreement to acquire all of the outstanding equity securities of Nevamar Holdco LLC from investment funds managed by Kohlberg Management IV LLC and other current owners.
 
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