What does holding company mean? What is a holding company?

1. Holding company refers to a company that controls a company by holding a certain number of shares. Holding companies are divided into pure holding companies and mixed holding companies according to their holding methods. Pure holding companies do not directly engage in production and operation business, but only carry out capital operation by holding shares of other companies. Hybrid holding companies not only carry out capital operation through holding, but also engage in some production and operation businesses.

2. The holding company not only has financial control over its subsidiaries, but also has operational control, and has the right to decide the appointment of important personnel and the determination of major policies, and even directly send people to operate and manage them. Also known as parent-subsidiary system.

3. A company that owns shares of other companies and can actually control its business activities is called the parent company, sometimes also called the head office; All or part of the assets are owned by the parent company, but companies that are economically and legally independent of the parent company are called subsidiaries. With the extension of controlling rights, Sun Company came into being.