holding company

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Holding Company

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.

holding company

a company that controls, usually through a majority shareholding, another company or companies.
References in periodicals archive ?
In Letter Ruling 201341004 (the facts and steps have been simplified for purposes of this item), a wholly owned subsidiary (Subsidiary) of a parent corporation (Parent) established a grantor trust under Sec.
Failure to adhere to these could result in creditors being able to "pierce the corporate shield" and hold the parent corporation accountable for the debts of the subsidiary.
f) The subcontractor can issue an invoice to the parent corporation for the testing service, and not include GST under the zero-rated provision of subsection 4(a) of Part V of Schedule VI of the ETA.
Although the preceding discussion suggests that revenue recognition for the parent corporation man, not occur until the resale of the counterpurchase goods, transactions must be recorded a each exchange that led to the final sale For the subsidiary (assuming a separate entity), the countertrade transactions are a series of "business as usual" entries The subsidiary would recognize revenue at the point of sale for the reasons state earlier.
12, 1990), the New York State Tax Appeals Tribunal determined that a corporation was involved in a unitary business with its parent, a holding company, when the parent corporation lent money to the subsidiary, was involved in obtaining outside financing for the subsidiary's business activities, had no employees of its own, and relied completely on the subsidiary's facilities and employees.
Parent-subsidiary controlled group definitions and tests: A parent-subsidiary group, one of the three types of controlled groups, consists of a common parent corporation connected with one or more other corporations through stock ownership to form a chain (or chains) of corporation.
The court stated that a parent corporation using a subsidiary for transaction of the parent's business (as distinct from the subsidiary's business) may be held liable for the acts of the subsidiary under general agency principles.
Decisions made by the parent corporation with respect to its customers and credit insurance offerings, which include a marketing focus on high credit-quality small businesses and the replacement of traditional credit insurance products with a bank debt waiver and cancellation program, will continue to impact the company's ability to expand its business.
2268 (1994), held worldwide combined reporting to be constitutional as applied to unitary groups whether the parent corporation was domestic or foreign.
1504(a) as one or more chains of includible corporations connected through stock ownership to a common parent corporation that is also an includible corporation, provided certain stock ownership requirements are met.
Arctic Slope Regional Corporation, ASRC Federal's parent corporation, is owned by more than 9,500 Inupiat Eskimos primarily located along Alaska's North Slope.

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