holding company

A company that controls one or a number of subsidiary companies. The holding company own the majority of the voting rights attached to the shares in the subsidiary company (by way of agreement with the shareholders in the subsidiary, or by outright ownership of those shares) or by maintaining the right to appoint and remove the majority of directors in the subsidiary. 

The subsidiaries in turn may own other subsidiaries, which would in turn be considered members of the group of the ultimate holding company. In other words, a holding company is a company that owns other companies, sits at the apex of the company structure, and controls its subsidiaries. 

Usage: A holding company paid the debt on behalf of the subsidiary company.

Related Words: company; subsidiary company; private company; public company; limited company; shareholders; shares.