Can two corporations own each other For example can Corporation A own 100 of the shares of Corporation B and can Corporation B own 80 of the shares of Corporation A?

Generally, yes; however, there may be restrictions on each corporation's power to vote the shares and courts may invalidate the arrangement.

Section 3.02 of the American Bar Association Revised Model Business Corporation Act allows a corporation to buy shares in any other entity. However, section 7.21(b) of the Act prohibits the voting of shares held by a corporation that is itself a majority-owned subsidiary of the corporation issuing the shares. Moreover, this section does not affect the possible application of court decisions that may invalidate circular holding situations not literally within the prohibitions of the section.

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