Replies to post #135005 on TheDirectory.com, Inc. (SEEK)

[ed7777777]

Go SEEK $$$$$$$ - We're becoming a holding Company. We'll be focused on seeking out new opportunities in Technology and Emerging Markets...... http://www.thedirectory.com/

One benefit of forming a holding company is that the holding company itself is protected from the losses. If one of their companies goes bankrupt, the holding company experiences a capital loss and a decline in net worth, but the bankrupt company’s debtors and creditors can’t pursue the holding company for remuneration. Thus, a major corporation might structure itself as a holding company with one subsidiary to own its brand name and trademarks, another to own its real estate, another to own its equipment and others to operate each franchise. This way, each subsidiary as well as the holding company itself has limited financial and legal liability. Structuring a company this way can also limit tax liability by strategically basing certain parts of the business in jurisdictions with lower tax rates.
http://www.investopedia.com/terms/h/holdingcompany.asp