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holding company & subsidiary company

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holding company & subsidiary company Empty holding company & subsidiary company

Post by nirj Thu Aug 02, 2012 12:46 pm

When a company purchased 51% share or more than 51% share of other company then the purchasing company is called holding company and the company who purchased is known as subsidiary company. If a company desire to control over in management of another company then it should have more than 50% share. So holding company must purchase more than 50% share of subsidiary company. The holding company control over the subsidiary company’s management and implement their decision on subsidiary company.

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