A company was holding what means

What does it mean for a company to be held

What does it mean for a company to be held, holding is a very common means in the workplace, what we need to know is that every business owner must understand the operation of the equity, the use of equity to implement the partnership, which is also necessary, the following to understand what it means for a company to be held.

What does it mean for a company to be controlled1

A company being controlled means that the company becomes a subsidiary of another company or the company's voice is replaced, and whoever has more control may be in charge. Control at the equity level includes absolute and relative control, where absolute control requires a 67% shareholding; absolute control is at least 51%.

Holding refers to the control of a company by holding a certain number of shares in that company. An organization holds shares of 50% or more or enough to control the operations of that joint stock company. However, a low shareholding does not necessarily mean that it has no say, and it depends on the actual situation.

The company includes limited liability companies and joint stock companies. A joint-stock company should have more than 2 people 200 or less as promoters, the shareholders of the company's liability to the extent of their subscription shares. There are strict legal procedures for the establishment and dissolution of the company, and the procedures are complicated.

The legal characteristics of the joint-stock company include more stringent conditions for the establishment of the company; a strict internal organization; the shares are equal; a typical joint-stock company, the company's credit is built entirely on the basis of capital; the joint-stock company is an enterprise legal person, independently assume civil liability according to law.

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 controls a company by holding a certain number of shares in that company. Holding company according to the holding mode, divided into pure holding company and mixed holding company. Pure holding company is not directly engaged in the production and operation of business, but only by virtue of holding shares of other companies, capital operations. Mixed holding company in addition to capital operations through the holding, but also engaged in some production business.

An organization that holds more than 50% of the shares or enough to control the operations of the joint stock company.

Expanded:

Holding is categorized into absolute and relative holding.

1, absolute control

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

2, relative control

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 by the proportion of the enterprise (relative control).

What does it mean for a company to be controlled2

Controlling a company with the smallest percentage of capital contribution is the same as a limited partnership

Characteristics of a limited partnership:

Firstly, a limited partnership consists of a general partner and a limited partner, with the general partner assuming unlimited joint and several liability for the debts of the partnership, and the limited partner The general partner is jointly and severally liable for the debts of the partnership, and the limited partner is liable for the debts of the partnership to the extent of his capital contribution.

Secondly, a limited partnership is established by more than two and less than fifty partners; however, unless otherwise provided by law. A limited partnership shall have at least one general partner.

Third, the name of the limited partnership shall indicate the words "limited partnership".

Fourth, the general partner of a limited partnership shall execute the partnership affairs. The limited partners do not execute partnership affairs and cannot represent the limited partnership externally.

Because of the above characteristics of the limited partnership, it is often used as a platform enterprise, and the platform enterprise to achieve the minimum proportion of capital to control the company. Purpose.

First of all, when a limited partnership is set up, the natural or legal person who wants to control the company acts as the general partner of the company, and regardless of the amount of his capital contribution, according to the provisions of the Partnership Law, the general partner executes the affairs of the partnership, and thus he naturally becomes the actual controller of the limited partnership.

Secondly, the natural or legal person who is the general partner decides to set up a limited liability company with the limited partnership as the shareholder, or to take a share in a company, holding the majority of the equity of the limited liability company. Since the affairs of the limited partnership are executed by the general partner, the general partner can make decisions directly on behalf of the limited partnership, including realizing control of the limited liability company in which the limited partnership holds a stake.

Finally, in order to avoid the unlimited liability of the general partner, it is possible to contribute tens of thousands of dollars to set up a limited liability company, and then set up a limited partnership with the limited liability company as the general partner.

Through the above operation, the limited partnership becomes a shareholding platform, and the natural or legal person as a general partner controls the limited partnership, and then the shareholding platform into the shares or the establishment of an absolute holding of the limited liability company, which is equivalent to the general partner's natural or legal person with the least amount of capital and shareholding indirectly control a limited liability company.

Special note: the partnership can not set up a one-person limited liability company, so the new establishment of this company can find another shareholder, this shareholder we only let it hold 1% of the equity, the limited partnership holds 99% of the equity

A company is holding what means 3

a holding company can be listed

A holding company can be listed, and it can be listed if it meets the listing conditions.

Legal basis

Article 50 of the Securities Law, a joint stock company to apply for stock listing, should meet the following conditions:

(a) the stock has been approved by the State Council Securities Regulatory Commission has been publicly issued.

(2) The total amount of the company's share capital is not less than RMB 30 million.

(3) The shares issued publicly amounted to more than twenty-five percent of the total number of shares of the company; if the total share capital of the company exceeds RMB 400 million, the proportion of shares issued publicly is ten percent or more.

(d) The company has not committed any major violations of law in the last three years, and there are no false records in the financial accounting reports.

Second, the difference between subsidiaries and controlling subsidiaries

Subsidiary refers to a certain amount of shares are controlled by another company or in accordance with the agreement by another company actually control, dominate the company. Subsidiary has an independent legal personality, has all its own property, its own company name, bylaws and board of directors, in its own name to carry out business activities, engage in all kinds of civil activities, and independently bear all the consequences and responsibilities brought about by the company's behavior. However, major decisions involving the interests of the company or major personnel arrangements, still have to be decided by the parent company.

Holding subsidiary means that more than 50% of its corporate capital or shares are controlled by another company, but not up to 100%. The company in accordance with relevant state laws and regulations and regulatory documents on the standardized operation of listed companies as well as the requirements of listed companies to control the assets, to controlling shareholders or de facto controller of the identity of the controlling subsidiary to exercise the right to supervise and manage the major issues, the investment enterprise in accordance with the law to enjoy the investment income, the right to make decisions on major issues. At the same time, it has the obligation to guide, supervise and provide relevant services to the controlling subsidiary.

Third, what are the advantages and disadvantages of wholly owned subsidiaries

Acquisition or registration of wholly owned subsidiaries, the advantage is that managers can fully control the daily business activities of subsidiaries in the target market, and to ensure that valuable technology, processes and some other intangible assets are left in the subsidiary; at the same time, it can also reduce the number of other competitors to obtain the the company's competitive advantage.

A wholly owned subsidiary is an excellent entry model if a company wants to coordinate the activities of all of its subsidiaries, and having full control over a wholly owned subsidiary is more attractive to managers pursuing a global strategy.

The downside is that this approach can be expensive, and companies must raise capital internally or in the financial markets to obtain it. Then, the company's exposure to risk can be high, as setting up a wholly owned subsidiary takes up a lot of the company's resources.