Question

This paragraph explains the activity of a holding company. Can someone please explain this in simple terms.

This class includes the activities of holding companies, i.e. units that hold the assets (owning controlling-levels of equity) of a group of subsidiary corporations and whose principal activity is owning the group. The holding companies in this class do not provide any other service to the businesses in which the equity is held, i.e. they do not administer or manage other units.

Answer 1

This paragraph is trying to get across that this class have a company that they owe but they can’t provide service to other businesses because they don’t own or have an agreement with these other businesses.