What does holding mean

Holding refers to holding a certain number of shares to control the business of a company. It is a company that exercises control over a company by holding a certain number of shares in that company.

Expansion: Holding companies are categorized into pure holding companies and mixed holding companies according to the manner of holding. Pure holding company is not directly engaged in the production and operation of business, only by virtue of holding shares of other companies, capital operations. Mixed holding company in addition to capital operation through holding, but also engaged in some production business.

Absolute holding: refers to the shareholders of the total capital of limited liability companies accounted for more than fifty percent of the capital or its shares accounted for more than fifty percent of the total share capital of the limited liability company.

Relative control: refers to the enterprise's total paid-in capital, an economic component of the capital contributed by the paid-in capital (share capital) accounted for a proportion of not more than 50%, but according to the provisions of the agreement with the actual control of the enterprise (agreement control); or relatively greater than the proportion of any other economic component of the capital contributed to the proportion of the relative control (relative control).