What is the term for a corporation that holds majority shares to control another corporation?

The term that refers to a corporation that holds majority shares to control another corporation is known as a parent or holding corporation. A parent corporation owns enough voting stock in another corporation, referred to as a subsidiary, to control its policies and oversee its management decisions. This relationship enables the parent company to consolidate financial results and engage in broader strategic initiatives that benefit the overall corporate structure.

In this context, a subsidiary is the corporation that is controlled, while the parent corporation is the entity that exerts control through ownership of the majority shares. This distinction is crucial in corporate governance and legal considerations, as it implicates authority, accountability, and the dynamics of corporate relationships. Understanding these terms is essential for grasping the fundamentals of corporate structure and management.