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29-587: SEPI was preceded by the Instituto Nacional de Industria (INI) and the Instituto Nacional de Hidrocarburos (INH). On June 16, 1995, SEPI was created in a provisional restructure which was authorized by Decree number 5/1995. On January 10, 1996, SEPI was ratified by Act of Parliament number 5/1999. This provided for the creation of various public legal entities and the abolition of the INI and

58-462: A corporate group . In some jurisdictions around the world, holding companies are called parent companies , which, besides holding stock in other companies, can conduct trade and other business activities themselves. Holding companies reduce risk for the shareholders , and can permit the ownership and control of a number of different companies. The New York Times uses the term parent holding company . Holding companies can be subsidiaries in

87-495: A tiered structure . Holding companies are also created to hold assets such as intellectual property or trade secrets , that are protected from the operating company. That creates a smaller risk when it comes to litigation . 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. That is, if Company A owns 80% or more of

116-526: A matter of broadcast regulation . In the United States, a personal holding company is defined in section 542 of the Internal Revenue Code . A corporation is a personal holding company if both of the following requirements are met: A parent company is a company that owns enough voting power in another firm (or subsidiary ) to control management and operations by influencing or electing its board of directors . The definition of

145-688: A nuclear residue processor (SEPI 20 percent and CIEMAT  [ es ] eighty percent); and the Red Eléctrica de España (REE) corporation, the national electricity supplier. The defence division includes DEFEX for defence equipment exports and security consulting; and the Navantia Group for military and civil construction. SEPI holds minority shareholdings in EADS Aircraft NV and HISPASAT satellite communications. The food and environment division includes Cetarsa tobacco;

174-425: A parent company differs from jurisdiction to jurisdiction, with the definition normally being defined by way of laws dealing with companies in that jurisdiction. When an existing company establishes a new company and keeps majority shares with itself, and invites other companies to buy minority shares, it is called a parent company. A parent company could simply be a company that wholly owns another company, which

203-570: A stake of up to 10% in Telefónica worth $ 2.2 billion. By March 2024, SEPI acquired a 3% stake in the company. List of publicly owned assets disposed up to March 2015. Instituto Nacional de Industria Instituto Nacional de Industria ( INI , National Institute of Industry) was a Spanish state-owned financing and industrial holding company established in Francoist Spain for the development of industry and social control. It

232-472: A tending subsidiary of the purchasing company, which, in turn, becomes the parent company of the subsidiary. (A holding below 50% could be sufficient to give a parent company material influence if they are the largest individual shareholder or if they are placed in control of the running of the operation by non-operational shareholders.) In the United Kingdom, the term holding company is defined by

261-466: Is defined by Part 1.2, Division 6, Section 46 of the Corporations Act 2001 (Cth) , which states: 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

290-458: Is sometimes done on a per- market basis. For example, in Atlanta both WNNX and later WWWQ are licensed to "WNNX LiCo, Inc." (LiCo meaning "license company"), both owned by Susquehanna Radio (which was later sold to Cumulus Media ). In determining caps to prevent excessive concentration of media ownership , all of these are attributed to the parent company, as are leased stations , as

319-778: The Agencia EFE , a news entity; the RTVE corporation, the state broadcaster; the Ente Publico RTVE; a public information service promoting citizen participation; and the Correos Group , the national postal service. The SEPI Group has overview of the social trust fund, Fundacion SEPI which arranges internships , student loans , and grants for technical training and business development activities. The SEPI group holds indirect shares in more than one hundred commercial enterprises and retains some minority shareholdings in

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348-480: The Companies Act 2006 at section 1159. It defines a holding company as a company that holds a majority of the voting rights in another company, or is a member of another company and has the right to appoint or remove a majority of its board of directors, or is a member of another company and controls alone, pursuant to an agreement with other members, a majority of the voting rights in that company. After

377-715: The Hipódromo de la Zarzuela royal horse racing; Mayasa consulting and project management; the Mercas group for wholesale markets; SAECA food sector investments; the TRAGSA Group for rural and agricultural development; and the Alimentos y Aceites, a producer of fine foods and olive oil. Alimentos y Aceites has shares in Ebro Foods which produces and sells rice and pasta sauces. The communication industry division included

406-532: The Istituto per la Ricostruzione Industriale (IRI) in Italy. Despite its inefficiencies, INI was instrumental in moving the mostly underdeveloped primary-sector-focused closed Spain of the 1940s to the booming Spain of the 1960s and early 1970s of the so-called Spanish miracle . To achieve its goal, INI either financed on its own or directed private funds to the creation of the country's fundamental industries under

435-632: 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 , based on total assets. The Public Utility Holding Company Act of 1935 caused many energy companies to divest their subsidiary businesses. Between 1938 and 1958

464-578: The 1980s, when the Spanish economy was fully opened to international trade and joined the European Economic Community , INI lost its raison d'être . Most of its companies were privatized in the 1980s and early 1990s. In this process, ENSIDESA was taken over by Arcelor , SEAT by Volkswagen Group , ENASA by Iveco , Calvo Sotelo by Repsol, and so on. Others, including ENDESA and Iberia, have kept their independence. In 1992 INI

493-606: The INH. SEPI has a direct and majority participation in nineteen companies, which make up the Grupo SEPI (SEPI Group). Its employees number around 80,000 workers. It also has interest in the Corporación Radiotelevisión Española (RTVE). SEPI also has minority direct shareholdings in seven companies, and indirect shareholdings in more than 100 companies. The SEPI Group has four divisions. These are

522-552: The International Airlines Group (IAG, formerly Iberia/BA) and España, Expansión Exterior (a Spanish exports development company with consulting, finance and technical assistance activities within foreign markets). In February 2022, SEPI received authorization to increase its stake in Indra Sistemas to up to 28%; it subsequently held a 25.2% stake. In December 2023, SEPI announced plans to acquire

551-455: The United Kingdom, is generally held that an organisation holding a 'controlling stake' in a company (a holding of over 51% of the stock) is in effect the de facto parent company of the firm, having overriding material influence over the held company's operations, even if no formal full takeover has been enacted. Once a full takeover or purchase is enacted, the held company is seen to have ceased to operate as an independent entity but to have become

580-430: The airlines Iberia (Iberia Líneas Aéreas de España S.A.) and Aviaco (Aviación y Comercio), and the aircraft manufacturer CASA (Construcciones Aeronáuticas S.A.). It absorbed failed companies in order to service debt, among other purposes. In the mid-to late 1970s, HUNOSA  [ es ] (Hulleras del Norte S.A.), a large Asturian coal mining conglomerate, and Compañía Transatlántica Española (CTE) were among

609-499: 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." The parent subsidiary company relationship is defined by Part 1, Section 5, Subsection 1 of the Companies Act, which states: 5.—(1) For the purposes of this Act, a corporation shall, subject to subsection (3), be deemed to be a subsidiary of another corporation, if — In

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638-637: The energy, defence, food and environment and communications industry investment divisions. The energy division includes ENSA , a nuclear power operator; the ENUSA group, a nuclear fuel producer; the HUNOSA  [ es ] group, a coal mining entity; and the SEPIDES group for energy consulting. SEPI also has minority shareholdings in ENAGÁS , the Spanish national gas supplier; ENRESA  [ es ] ,

667-418: The exception of HUNOSA and a few other industries. In 1995 the INI was abolished. The chairmen of the INI were as follows: Holding company A holding company is a company whose primary business is holding a controlling interest in the securities of other companies. A holding company usually does not produce goods or services itself. Its purpose is to own stock of other companies to form

696-483: The non-functional companies that were integrated into the Instituto Nacional de Industria. However, there were other Spanish state owned companies such as Campsa (Compañía Arrendataria del Monopolio de Petróleos S.A.; filling stations ), RENFE (Red Nacional de los Ferrocarriles Españoles; railways), RTVE ( public broadcaster ), Tabacalera (tobacco), or Telefónica (Compañía Telefónica Nacional de España; telecommunications) that were never under INI's control. In

725-571: The number of holding companies declined from 216 to 18. An energy law passed in 2005 removed the 1935 requirements, and has led to mergers and holding company formation among power marketing and power brokering companies. In US broadcasting , many major media conglomerates have purchased smaller broadcasters outright, but have not changed the broadcast licenses to reflect this, resulting in stations that are (for example) still licensed to Jacor and Citicasters , effectively making them such as subsidiary companies of their owner iHeartMedia . This

754-1387: The spirit of the national interest and autarky . Although its first acts ended in failure (e.g., Adaro ), INI soon turned itself into the biggest industrial conglomerate of Spain. INI included a broad range of companies, from heavy and basic industries to "soft" services, most of them with E.N., standing for Empresa Nacional (National Corporation), in their names. Among them were: Ensidesa (Empresa Nacional Siderúrgica S.A.)– Aceralia (steel), Enasa (Empresa Nacional de Autocamiones S.A.)– Pegaso (trucks), SEAT (Sociedad Española de Automóviles de Turismo; cars), INH (Instituto Nacional de Hidrocarburos)– Repsol (Refinería de Petróleos de Escombreras Oil; oil and gas), ENCE (Empresa Nacional de Celulosas de España) ( cellulose , biofuels ), ENDASA (Empresa Nacional de Aluminio S.A.; aluminium), Endesa (Empresa Nacional de Electricidad S.A.; power), ENFERSA (Empresa Nacional de Fertilizantes S.A.; fertilizers), E.N. Calvo Sotelo (petrochemicals), E.N. Bazán–ASTANO ( Astilleros y Talleres del Noroeste )– Navantia (naval shipyards), Astilleros Españoles–AESA (civilian shipyards), E.N. Santa Bárbara (weapons), E.N. Elcano (merchant shipping line), ATESA (Autotransporte Turístico Español S.A.; operator), ENTURSA (Empresa Nacional de Turismo S.A.; tourism) and others. INI also assisted mergers and integration, including of private enterprises, like

783-540: The stock of Company B, Company A will not pay taxes on dividends paid by Company B to its stockholders, as the payment of dividends from B to A is essentially transferring cash within a single enterprise. Any other shareholders of Company B will pay the usual taxes on dividends, as they are legitimate and ordinary dividends to these shareholders. Sometimes, a company intended to be a pure holding company identifies itself as such by adding "Holding" or "Holdings" to its name. The parent company–subsidiary company relationship

812-414: Was entitled to create a new holding company ( Sociedad Anónima ) over which it would pass all shares owned in every company's capital it had still participated. The new company named TENEO  [ es ] , which was founded on July 4 of the same year, merged into Sociedad Estatal de Participaciones Industriales (SEPI) in 1996 and the latter has practically disposed the totality of its owned shares with

841-619: Was succeeded by the Sociedad Estatal de Participaciones Industriales (SEPI) in 1995. The INI was established on 25 September 1941 with a starting capital of fifty million pesetas . It aimed to promote the development of Spanish industry and the self-sufficiency of the Spanish economy. It aimed to overturn the effects of the devastation caused by the Spanish Civil War by carrying out in Spain functions similar to those of

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