A holding company must control more than 50% of the company's stock before it is considered a subsidiary. Holding companies may additionally own other holding companies – in which case they are called leading holding companies. The holding company benefits from all agricultural privileges and duties associated with ownership for its subsidiaries. Subsidiaries continue to operate as individual entities due to the separate legal entity, although key business decisions are made by the holding company.2) On the basis of management, the holding company governs itself management policies and operations of subsidiaries and retains the right to add or remove board members, directors and other key management personnel. A holding company may have strict control over management or may allow subsidiaries to hire mid-level people and do some budgeting.