Holding Company

A Holding Company is Joint-stock Company or a Limited Liability Company which supports financially and operationally other companies being subsidiary to them with 51 % share on subsidiary companies. The name of such Company will have “Holding” initially, in all papers, advertisements & documents.

For a Holding Company,

• • • Capital must not be less than 2 million.
    • They should not hold shares in General/Limited Partnership Companies or other Holding Companies.

Any chairman of the Subsidiary company must attend the meetings invited by the Holding company discussing the matters related to the subsidiary company.

Objectives

(a) the management of subsidiary companies or participation in the management of other companies in which the holding company owns shares;

(b) the investment of its funds in shares, bonds and securities;

(c) the granting of loans, guarantees and finance to its subsidiaries; and

(d) the acquisition of patent rights, trade marks, concessions and the other intangible rights for the exploitation by the company or lease to its subsidiaries or to other companies.

Mode Of Establishment

• • • Establishing a new joint stock company which meets the above requirements;
    • Amending the objects of an existing joint stock company into those of a holding company and meeting the other requirements; and
    • Converting a LLC or Joint stock company into a holding company.

Maritime Companies

• • • They are established for the purpose of engaging in maritime activities under the Maritime Law.
    • These companies are subjected to the provisions of this Law related to the Joint-stock Companies with such amendments and exceptions under the Maritime Law.