Holding company

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166 Points Posted on 24 March 2021
If a company holds 20% equity share capital and 32% preference share capital in another company then can we say that first company is holding company?
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On 24 March 2021 at 09:08 Report
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This discussion clarifies the definition of a holding company. Generally, a company is considered a holding company if it owns more than 50% of the equity shares of another company, thereby controlling it. However, the nature of preference shares, particularly if they grant voting rights due to dividend non-payment, can also influence whether a company is deemed a subsidiary.

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Chartered Accountant
24588 Points Posted on 24 March 2021
For holding company the company must hold 20% of share capital of it's subsidiary company
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On 24 March 2021 at 09:29
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article
734 Points Posted on 26 March 2021
If a company holds more than 50% of equity shares of other company then controlling company is called holding company
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On 26 March 2021 at 12:47
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Professional
1979 Points Posted on 29 March 2021
If such preference shares get voting rights,due to non payment of dividend (like cumulative ) then company will be considered as subsidiary
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On 29 March 2021 at 20:39

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