Holdings organization is one of the most advanced and profitable forms of cooperation between the various business organizations. Although the legislation of developed countries may very differently regulate the legal and financial relationship in holdings, nowadays more and more legislation regulations are reduced to a common denominator.
LEGAL BASIS FOR THE EXISTENCE OF THE HOLDING
Holding as a legal form of organization is legalized in most countries. The establishment of company is meant, which will own majority interest in several joint-stock companies and to maintain control on this basis. Creation of holding is usually negotiated in advance by the leaders of the joint stock companies whose shares will be acquired by the holding in the future.
Holding does not eliminate the existence of its member organizations and does not detract their independence. This is precisely the advantage of creating a holding over the actual union of different organizations. Meanwhile, coordination of efforts and uniform distribution of resources, as well as cooperation in the framework of a specific business strategy and investment and pooling of interests – all this contributes to strengthening the position of the holding and all of its members on the market.
For large entrepreneurs, investors, senior management of business organizations holding seems to be one of the most appropriate forms of cooperation with other organizations without compromising anyone’s interests. It should be noted that the creation of holdings is in demand in various fields, both in the field of industry and agriculture, and in high-tech area, information transfer and representation of interests in the international arena.
INTERNATIONAL HOLDINGS
Holding can exist not only in one country – it can combine several organizations operating in different countries. Needless to say, the creation of such a holding would be a more complicated and time consuming process. It is necessary to establish a new holding with rules that do not conflict with the norms of legislation of various countries and for all that will suit all members of the holding.
Key principles of the holding existence can be summarized as follows:
- Despite the geographical location, all holding members are connected by common economic interests.
- Under the coordination of efforts the equality of all members is supported, there is no suppression of one interests with the other.
- All reporting in the management of the holding is available equally to all the members, without facts concealment and misrepresentation.
- Creating a holding and its activities do not adversely affect already formed partnerships and information connections of its members with other organizations.
International holding, as well as national, exists on the basis of a key provision that it brings only benefit to all its members and does no damage.
POSSIBLE PROBLEMS AND THEIR SOLUTIONS
Establishment of an international holding is always a complex process, conducted in several stages that include the following aspects:
- harmonization of holding rules between all the members;
- discussion of common goals and objectives, the arrival to the “common denominator”;
- harmonization of rules of existence, the goals and objectives of the holding with the legislation of each country in which the holding will operate and exist – both in fact and legally.
Of course, all these issues need to be addressed by overcoming the language barrier. That is why, in order to avoid any misunderstanding and possible negative situations in the future, it makes sense to contact skilled specialists in the field of international business and law. Such specialists are working with us, and you can always get our full support in international holdings organizing.
Holdings organization
