What are absolute holding and relative holding in company law?

Absolute holding means that shareholders' capital contribution accounts for more than 50% of the total capital of a limited liability company or their shares account for more than 50% of the total share capital of a joint stock limited company. Relative holding means that in the total paid-in capital of an enterprise, although the proportion of paid-in capital owned by an investor in an economic sector does not exceed 50%, he has the actual control right of the enterprise according to the agreement. Article 43 of the Company Law of People's Republic of China (PRC) stipulates that, unless otherwise provided for in this Law, the discussion methods and voting procedures of the shareholders' meeting shall be stipulated in the company's articles of association. The shareholders' meeting shall make resolutions on amending the Articles of Association, increasing or decreasing the registered capital, and on the merger, division, dissolution or change of corporate form of the company, which must be approved by shareholders representing more than two thirds of the voting rights.