A holding company must control more than 50% of the company's shares before it is considered a subsidiary. Holding companies may also own other holding companies: in this case, they are known as senior holding companies. The holding company has all agricultural ownership privileges and obligations for its subsidiaries. The subsidiaries continue to function as individual entities due to the separate legal entity, although key business decisions are made by the holding company.2) On the basis of management, the Holding company independently governs the management policies and operations of the subsidiaries and maintains the right to add or remove board members, directors and other key management personnel. A holding company may have tight control over management control or may allow subsidiaries to make mid-level hires and set a certain budget