An example would be a corporation A, that holds a controlling interest (say 51%) in company B, which holds a controlling interest (51% again) in company C, and now company A has a controlling interest in company C while only owning 25.5% of its stock.

In Hebrew this is called a (literal translation) "control pyramid", but I can't find an equivalent term in English.


I think you are referring to a holding company structure:

  • A holding company is a firm that owns the outstanding stock of other companies. The term usually refers to the company that does not produce or manufacture goods itself, but owns the shares of other companies that produce goods and services.

    • Holding companies reduce the risk of owners and allow the ownership of multiple companies. You can turn your business into a holding company for the purpose of owning property such as patents, estates, trademarks, and other assets. There are numerous benefits of forming holding companies.

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  • As you say Holding Company means one that does nothing but hold (a controlling interest in) other companies. The whole structure, in the UK, would be called a Group. – WS2 Oct 17 '15 at 22:41

The Internal Revenue Service (US) calls this a "controlled group."

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