In the United States, 80% of stock, in voting and value, must be owned before tax consolidation benefits such as tax-free dividends can be claimed.
[4][5] The parent company–subsidiary company relationship is defined by Part 1.2, Division 6, Section 46 of the Corporations Act 2001 (Cth), which states:[6] A body corporate (in this section called the first body) is a subsidiary of another body corporate if, and only if: Toronto-based lawyer Michael Finley has stated, "The emerging trend that has seen international plaintiffs permitted to proceed with claims against Canadian parent companies for the allegedly wrongful activity of their foreign subsidiaries means that the corporate veil is no longer a silver bullet to the heart of a plaintiff's case.
After the financial crisis of 2007–2008, many U.S. investment banks converted to holding companies.
According to the Federal Financial Institutions Examination Council's website, JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, and Goldman Sachs were the five largest bank holding companies in the finance sector, as of December 2013[update], based on total assets.
In determining caps to prevent excessive concentration of media ownership, all of these are attributed to the parent company, as are leased stations, as a matter of broadcast regulation.
In the United States, a personal holding company is defined in section 542 of the Internal Revenue Code.