Groups of companies do not have separate legal personalities under business enterprise law, but there are important legal and practical consequences. A holding company is defined as controlling a subsidiary company by having a majority of voting rights, the right to appoint directors with majority control, or the ability to influence policy. A wholly owned subsidiary is one where the holding company holds or owns all the general voting rights.

1. BUSINESS ENTERPRISE LAW
GROUPS OF COMPANIES
**NO SEPARATE LEGAL PERSONALITY BUT IMPORTANT LEGAL AND PRACTICAL CONSEQUENCES
DEFINITION : SECTION 1- HOLDING COMPANY AND ALL ITS SUBSIDIARIES
HOLDING COMPANY: MUST CONTROL SUBSIDIARY COMPANY

2.  S 2(2) (a)
 HOLDING COMPANY MUST HAVE A SUBSIDIARY OR
 DIRECTLY OR INDIRECTLY CONTROL THE EXERCISE OF MAJORITY VOTING RIGHTS
 OR HAVE THE RIGHT TO APPOINT , ELECT , CONTROL APPOINTMENT OR ELECTION
OF DIRECTORS WHO CONTROL THE MAJORITY OF VOTES
 CAN ALSO MEAN INFLUENCE OF POLICY
VOTING RIGHTS – S 3(2) VOTING POWER AND NOT NUMBER OF SHARES (SEE CONSIDERATIONS)
HOLDING COMPANY
SUBSIDIARY
S 3(1) (a)
See notes on control
for definition
WHOLLY OWNED
SUBSIDIARY
ALL GENERAL
VOTING RIGHTS ARE
HELD OR OWNED BY
HOLDING COMPANY