Question

Sandra Ltd. is a credit worthy Company, which holds more than 50% of the nominal value of
Kishore Ltd. another company. Here which company can be termend as holding company?
Explain it.

Answer 1

Sandra Ltd is the holding company whereas the Kishore Ltd is the subsidiary company

Explanation:

• Holding company is the limited liability company or a corporation, which holds  or controls the ownership interest in other companies or the assets, that those companies use.

• Usually, the holding company holds the equity interest instead of actively involves in business like selling services or goods.

• Under this situation, the Sandra Ltd. holds more than 50% of nominal value, this company is the holding company. Whereas the Kishore Ltd. is the subsidiary company, which is owned as well as controlled by another company.

You can learn more from here about holding company:

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You can learn more from here about subsidiary company:

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