Holding Company
/ˈhoʊldɪŋ ˈkʌmpəni/
Definitions
- (n.) A company that owns enough voting stock in another company to control its management and policies.
The holding company exercised decisive control over its subsidiaries.
- (n.) A parent corporation that does not itself produce goods or services but owns shares of companies that do.
The conglomerate operates as a holding company, managing a portfolio of diverse businesses.
Forms
- holding companies
Related terms
See also
Commentary
Holding companies are often used to limit liability and centralize management; drafting should clarify the scope of control and ownership to distinguish from operating entities.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.