Post on 31-Aug-2014
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What are the Things that you Have to Know about Holding Companies?
A lot of people are probably thinking about holding companies and
how they operate on the industry.
There are a lot of different holding companies out
there because it is beneficial to operate this
type of company.
Here are some of the important information that you need to know
about these holding companies:
What is a Holding Company?
A holding company is a very specific type of business that is
not directly related to any production of products and
services.
It simply means that a holding company is a type of organization that doesn’t conduct any kind of activity other than having
shares or holdings on other companies.
They earn by getting dividends from theirs
subsidiaries and it will be based on the amount of shares or holdings that
they have on the subsidiaries.
If a holding company has shares on a company or a subsidiary, they also make
sure that the companies will not be taken over by other
people.
How can you say that a Company is a Subsidiary of an
Organization?
A holding company can consider another
company as a subsidiary if they hold
the majority of the voting rights in that
company. It means that the holding company is
currently holding more than 51% of the shares
in that company.
If a holding company is a member of the subsidiary and
they have the authority to appoint or dismiss employees and boards, it means that the
company is a subsidiary of that holding company.
This is mainly because the power to appoint or dismiss is only given
to the person with the highest shares on that company so if a
holding company has the biggest share,
it means that the company is already
considered as a subsidiary of that holding company.
If it happens that the company has another subsidiary and that
particular company is a subsidiary of the holding company,
it means that all the companies on the pyramid will be a subsidiary of the
holding company as long as they have the majority of the
voting rights.
Columbia Care LLC is one of the
most popular holding companies with interests in the healthcare, real estate, clinical research and
education and technology sectors.
Aside from being a holding company, they are also offering other services to their clients so they also run their own operations through the efforts of
CEO, Nicholas Vita, President Bob Mayerson and the Board of
Directors, Chaired by Michael Abbott.
https://sites.google.com/site/thenicholasvita/