Subsidiary, holding, associate company

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Querist : Anonymous

Querist : Anonymous (Querist)

02 December 2016 Dear Experts

Greeting of the day to all members.
Query :- generally i have been listening the word such as subsidiary, holding, associate company . Please let me know the meaning of subsidiary and Holding & associate company? do clarify with an Example if possible?

THANKS IN ADVANCE
RACHNA GOYAL

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
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02 December 2016 A subsidiary is a company with voting stock that is more than 50% controlled by another company, usually referred to as the parent company or the holding company. A subsidiary is partly or completely owned by the parent company,

A holding company is an entity formed to buy and hold the majority of stock of other companies; a subsidiary is a business whose majority of stock is owned by a holding company.

“Associate company” in relation to another company, means acompany in which that other company has a significant influence (owns a significant portion of voting shares, usually 20–50%), but which is not a subsidiary company of the company having such influence and includes a joint venture company.

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