Holdin and subsidery company

4.classification on the basis of controle:

On the basis of control, companies may be classified in to:

1.holding company.

2.subsidery company.

1.holding company:

A company is known as the holding company of another company if it has control over that other company. A company deemed to be the holding company of another if, but only if, that other is its subsidiary.

2.subsidery company:

A company is known as a subsidery of another company of another company when control is excersided by the latter over the former called a subsidery company. In the following three cases:

1.company controlling compensation of board directors.

2.holding of majority of shares.

3.subsidery of another subsidery.