Answer / reena kamat

A Company will be termed as a holding company if it:
1.controls the composition of the Board of Directors
2.holds more than half of the nominal value of shares in
the Company
3.the a company is the subsidiary of any company which is
the subsidiary of this company
of any other Company

Thus it controls the affairs of any other Company or is an
indirect holding company.

Answer / neha

A company that owns enough voting stock in another firm to
control management and operations by influencing or electing
its board of directors. also called parent company.

OR

By definition, a holding company is a corporation that is
typically used to hold the stock of an operating company.
The holding company itself does not produce goods or
services; it has no employees. Its sole purpose is to own or
hold shares of active companies with assets, people and
business operations.

who are the potential share holders?

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