Holding and Subsidiary Company

In class, when we were taught of Company Law, we came across different classifications of companies. They are Unlimited & Limited Co., Public & Private Co. and Holding & Subsidiary Co. Here, I am going to give some examples on Holding & Subsidiary Co.

A company is a subsidiary of a holding company if the holding company controls the composition of the board of directors; controls over half of the voting power of the subsidiary; and holds more than half of the issued share capital of the subsidiary company.

Naim Holdings Berhad is a holding company while Naim Cendera Sdn Bhd (NCSB) is its subsidiary. NCSB is Naim Holdings Berhad's 100% owned subsidiary. It means that Naim Holdings Berhad controls more than half of the voting power of NCSB.

Another example is Berjaya Assets Berhad. Its subsidiary is Berjaya Times Square Sdn Bhd and Natural Avenue Sdn Bhd. Berjaya Times Square Sdn Bhd is a 100% owned subsidiary while for Natural Avenue Sdn Bhd, Berjaya Assets Berhad owns 65% of its shares.