Hovedselskapets

Hovedselskapet, or the parent company, is the top-level company in a corporate group that owns one or more subsidiary companies. It holds a controlling interest in its subsidiaries and often consolidates their financial results with the group’s accounts. The parent provides strategic direction, capital allocation, and governance for the entire group, while subsidiaries focus on operational activities in their respective markets or business lines.

Functions and structure

The parent company establishes the overall strategy, approves major investments, and allocates resources across the group. It typically chairs the group’s board, appoints top executives, and oversees risk management, financial reporting, and compliance. Many groups also centralize shared services such as financing, human resources, information technology, and procurement to achieve economies of scale. Each subsidiary remains a separate legal entity, allowing it to operate with some autonomy while being bound to group-wide objectives.

Control and ownership

Control is usually achieved by owning a majority of voting shares or through contractual arrangements that grant decision-making power to the parent. Ownership structures can include intermediate holding entities or special arrangements, and regulatory frameworks may require minority protection and disclosure obligations in some jurisdictions.

Legal and financial implications

In consolidation, the parent’s accounts reflect the subsidiaries’ results, with intercompany transactions eliminated. While the parent provides governance and risk oversight, liabilities generally remain with the respective subsidiaries unless guarantees or broader liability arrangements exist. Transfer pricing, cross-border financing, and regulatory scrutiny are common considerations in managing a Hovedselskapet.

See also: corporate group, holding company, parent-subsidiary relationship.