Q.Company A holds more than one-half of the total voting power of Company B. Under the Companies Act, 2013, Company A is Company B's:

Section 2(46) defines a Holding Company precisely by this majority-voting-power (or Board-control) relationship over another company.

Section 2(46) defines a holding company as one that controls the composition of another company's Board of Directors, or holds (directly or through another subsidiary) more than one-half of that other company's total voting power. Company A, holding more than half of Company B's voting power, is therefore Company B's holding company, and Company B is Company A's subsidiary (Section 2(87)).

Option-by-option analysis:

• (a) Incorrect — 'subsidiary' describes the CONTROLLED company (Company B here), not the controlling one.
• (b) Correct — Company A, as the controlling company, is precisely the Section 2(46) holding company. …