What is the concept of group holding company?

Concept: Holding group refers to a company that controls a company by holding a certain number of shares. Holding groups are divided into pure holding companies and mixed holding companies according to 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. Holding group not only has financial control over 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.

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1. The enterprise group is based on public ownership, with brand-name high-quality products or major products in the national economy as the leader, with one or several large and medium-sized backbone enterprises and independent scientific research and design units as the main body, and is composed of a group of enterprises and scientific research and design units with internal economic and technological ties; It plays an important role in the production and operation activities of a certain industry or a certain kind of products, has strong scientific research and development capabilities, and has comprehensive functions such as scientific research, production, sales, information and service. Legal basis: Interim Provisions on the Registration and Administration of Enterprise Groups Article 3 An enterprise group refers to a certain-scale enterprise legal person consortium, which is composed of parent companies, subsidiaries, shareholding companies and other member enterprises or institutions, with capital as the main link and peers as the standard. Enterprise group does not have the qualification of enterprise legal person.

2. The earliest national normative documents on the formation and definition of enterprise groups are as follows: First, enterprise groups are economic organizations with multi-level organizational structure that meet the objective needs of socialist planned commodity economy and socialized mass production. Its core layer is an economic entity with independent management, independent accounting, self-financing, tax payment according to regulations, economic responsibility and legal personality.