A holding company assumes control of its subsidiaries through?
Answer Details
A holding company assumes control of its subsidiaries through "majority shareholding." This means that the holding company owns more than 50% of the shares in the subsidiary company, giving it the power to control the subsidiary's operations and decision-making processes. The holding company can appoint the board of directors and management team of the subsidiary, and can influence the subsidiary's strategic direction and financial decisions. By owning a majority of the shares, the holding company has the ability to approve or reject important proposals, such as mergers or acquisitions, and can veto decisions that are not in its best interest. This allows the holding company to exert significant control over the subsidiary without having to take over routine administration or pay all the debts outright.