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.
The advantages of the holding company are:
1, the economic scale is considerable.
Holding company is different from ordinary company, which is the aggregate of enterprises and the result of the development of ordinary company to a considerable scale. Because a company must have sufficient strength to form a holding relationship with other companies, when a holding company is formed, it will inevitably form an economic entity stronger than a single company. Therefore, internationally renowned large companies are basically holding companies, and some excellent domestic companies are also developing into holding management.
2. It is assets that closely link enterprises.
Holding company is a kind of property right management institution widely adopted abroad. It is different from ordinary enterprises directly engaged in commodity production, and it is not a simple product cooperation relationship, nor is it a cooperation relationship between enterprises. Mainly engaged in the management and operation of enterprise property rights based on equity relationship through holding, or promoted the commodity operation of the group through equity participation, holding or mutual holding. In fact, these holding companies have formed enterprise groups linked by asset relations.
3. The controlled company has legal personality.
Another important feature of the holding company is that the parent company and the holding subsidiary are legally independent of each other as legal persons, and the system of concurrent directors based on capital merger is adopted. This is a major difference between the holding company and the business department system.
Although the division system is a highly decentralized system adopted by large companies, each division generally has no personality ability. The holding company is an independent legal person, and the company is established within the company. Each subsidiary is a completely decentralized profit management unit, with an independent management organization, fully responsible for profits and independent fund-raising ability.
4. Diversification This holding company is rich in financial resources.
In order to accelerate the appreciation of assets and reduce the huge risks in the stock market, investors generally adopt diversified business strategies, enter all fields of the market economy, pay attention to the serialization and diversification of products, and have strong competitive development capabilities.
5. Have considerable financing ability.
The parent company of a holding company must have two powerful abilities, namely, financing ability and internal capital control ability, in order to form unified and centralized financial resources and credit, adjust internal structure and have certain ability to support the development of key products and key enterprises, and accelerate the development of the company through reinvestment and rolling operation of funds.