Holding and Subsidiary Company
Holding company and subsidiary company are two separate legal entities. Section 5 of Companies Act 1965 stated that "The first mentioned corporation is a subsidiary of any corporation which is that other corporation's subsidiary."
A company is a subsidiary of that parent company if the parent company:
a) controls the compositions of the borad of directors of the first mentioned company.
b) controls more than half of the voting power of the first mentioned corporation.
c) holds more then half of the issued share capital of the first mentioned corporation.
Example 1:
Maxis Communications Sdn Bhd (Parent) and its subsidiaries including UMTS, Maxis Mobile Sdn Bhd, Maxis Multimedia Sdn Bhd and Maxis Broadband Sdn Bhd. Based on Maxis's 2003 annual report, UMTS (Malaysia) Sdn. Bhd, a wholly owned subsidiary of Maxis , is awarded the 3G Spectrum Assignment by Malaysian Communications and Multimedia Commission for the provision of 3G services. In May 2003, Maxis completes its acquisition against Malaysian Mobile Services Sdn. Bhd which formerly known as TIMECel Sdn. Bhd.
Example 2:
Berkshire Hathaway Inc. (Parent) is a diversified company that involved in the business of financial services, insurance, jewelry, air services, furniture and many more. It has more than 50 subsidiaries. One example is NetJets. Inc, evidence shown in its official website: http://www.netjets.com/default.asp
Click this link to view the list of its subsidiaries : http://www.berkshirehathaway.com/subs/sublinks.html
Holding company and subsidiary company are two separate legal entities. Section 5 of Companies Act 1965 stated that "The first mentioned corporation is a subsidiary of any corporation which is that other corporation's subsidiary."
A company is a subsidiary of that parent company if the parent company:
a) controls the compositions of the borad of directors of the first mentioned company.
b) controls more than half of the voting power of the first mentioned corporation.
c) holds more then half of the issued share capital of the first mentioned corporation.
Example 1:
Maxis Communications Sdn Bhd (Parent) and its subsidiaries including UMTS, Maxis Mobile Sdn Bhd, Maxis Multimedia Sdn Bhd and Maxis Broadband Sdn Bhd. Based on Maxis's 2003 annual report, UMTS (Malaysia) Sdn. Bhd, a wholly owned subsidiary of Maxis , is awarded the 3G Spectrum Assignment by Malaysian Communications and Multimedia Commission for the provision of 3G services. In May 2003, Maxis completes its acquisition against Malaysian Mobile Services Sdn. Bhd which formerly known as TIMECel Sdn. Bhd.
Example 2:
Berkshire Hathaway Inc. (Parent) is a diversified company that involved in the business of financial services, insurance, jewelry, air services, furniture and many more. It has more than 50 subsidiaries. One example is NetJets. Inc, evidence shown in its official website: http://www.netjets.com/default.asp
Click this link to view the list of its subsidiaries : http://www.berkshirehathaway.com/subs/sublinks.html
0 comments:
Post a Comment