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Glossary of Credit Management Terms. Letter H

Holding company:
A company formed for the purpose of exercising financial control over a number of operating companies by buying up all or the majority of their shares. A company has a controlling interest in another when it has acquired over 50% of its issued shares which have voting rights. It also has control over the composition of the board of directors of the subsidiary company.
The company having the majority interest in another is also referred to as the Parent company.