Mantelholding

Mantelholding is a legal and financial concept related to the ownership structure of companies. It refers to a parent company, often referred to as the "holding company" or "parent undertaking," that owns a controlling interest in one or more other companies, known as subsidiaries or "subsidiary undertakings." The primary asset of a mantelholding company is typically the shares or voting stock of these subsidiaries.

The purpose of a mantelholding structure can vary. It may be used to segregate different business activities into separate legal entities, which can help manage risk by limiting the liability of the parent company to the assets of the specific subsidiary. This structure can also facilitate easier management and control of diverse operations, allowing for specialization within each subsidiary. Furthermore, it can be advantageous for tax planning and for streamlining mergers and acquisitions.

In essence, the mantelholding company acts as an overarching entity that directs and supervises its subsidiaries, which are the operational arms of the business. The subsidiaries conduct their own business activities, but their strategic direction and ultimate ownership lie with the mantelholding company. This structure is common in large corporations with multiple divisions or distinct business lines.