Editing Holding company (section)

===United Kingdom===
In the United Kingdom, is generally held that an organisation holding a 'controlling stake' in a company (a holding of over 51% of the stock) is in effect the de facto parent company of the firm, having overriding material influence over the held company's operations, even if no formal full takeover has been enacted. Once a full takeover or purchase is enacted, the held company is seen to have ceased to operate as an independent entity but to have become a tending subsidiary of the purchasing company, which, in turn, becomes the parent company of the subsidiary. (A holding below 50% could be sufficient to give a parent company material influence if they are the largest individual shareholder or if they are placed in control of the running of the operation by non-operational shareholders.)<ref>{{cite book |url=https://ecgi.global/sites/default/files/working_papers/documents/SSRN-id2557680.pdf |title=Shareholders in the United Kingdom |author=P. Davies |date=January 2015 |publisher=ECGI |access-date=6 May 2021 |archive-date=6 May 2021 |archive-url=https://web.archive.org/web/20210506190216/https://ecgi.global/sites/default/files/working_papers/documents/SSRN-id2557680.pdf |url-status=live }}</ref><ref>{{cite book  |page=78
|title=The Political Economy of European Union
|author=Dermot McCann |year=2010
|publisher=Polity
|isbn=9780745638911
|url=https://books.google.com/books?id=BvcQ8YpdWGEC&pg=PA78}}</ref>

====Company law====
In the United Kingdom, the term ''holding company'' is defined by the [[Companies Act 2006]] at section 1159.<ref>{{cite web
|url=http://www.legislation.gov.uk/ukpga/2006/46/section/1159
|title=Companies Act 2006 - s.1159
|website=legislation.gov.uk
|access-date=2020-01-09
|archive-date=25 December 2019
|archive-url=https://web.archive.org/web/20191225150142/http://www.legislation.gov.uk/ukpga/2006/46/section/1159
|url-status=live
}}</ref> It defines a holding company as a company that holds a majority of the voting rights in another company, ''or'' is a member of another company and has the right to appoint or remove a majority of its board of directors, ''or'' is a member of another company and controls alone, pursuant to an agreement with other members, a majority of the voting rights in that company.