Difference between holding and subsidiary company in tabular form

A holding company buys, absorbs or otherwise obtains a majority
percentage of stock in another company, which becomes known as its subsidiary.
Typically, a holding company must control 50 percent or more of a company’s
stock before it's considered a subsidiary. Holding companies may also own other
holding companies — in this case, they're known as top holding companies. The
holding company has all rights and responsibilities of ownership for its
subsidiaries. The subsidiaries, while not independently owned, often continue
to operate as individual entities, though major corporate decisions are made by
the holding company.

A holding company directs the management and operations of the
subsidiaries it owns and maintains the authority to add or remove board
members, directors and other key management and personnel. A holding company
may have strict managerial control or may allow subsidiaries to act with some
level of autonomy for day-to-day business operations, including lower- and
midlevel hiring and certain budgeting decisions.

A subsidiary has little to no financial
control over its operations. Even independently acting subsidiaries are
ultimately financially controlled by their holding company. This includes
financial activities such as investment decisions, sales projections and
budgeting. If a subsidiary was itself a holding company prior to becoming a
subsidiary of another holding company, all of its subsidiaries also become
subsidiaries of the top holding company.

A holding company may invest in
subsidiaries in a variety of industries to diversify its investment, lower its
risk potential and, in some instances, take advantage of shared loss and tax
consolidation. Although a holding company may enjoy the profits of its
subsidiaries, it also has a fiduciary responsibility to the subsidiaries it
controls. A subsidiary that regains a majority of its shares also regains its
autonomy from its holding company.