Question
Define a holding company and a subsidiary company. When can a company be called a subsidiary of another company? Explain.
Answer :
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A holding company is a company that has control over another company by holding a majority of its voting shares or by having the power to appoint or remove the majority of its board of directors. The primary purpose of a holding company is to exercise control and management over its subsidiary companies rather than directly engaging in commercial or operational activities. Holding companies are recognized under the Companies Act, 2013, and they provide strategic direction and oversight
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