emaettevõtte

emaettevõte, or parent company, is a company that controls one or more subsidiary companies. Control is typically achieved by owning a majority of voting shares or through other arrangements that grant decisive power, such as board representation or voting agreements. A parent may be a pure holding company or an operating company that also runs its own business.

In a corporate group, the emaettevõte sits at the top of the structure. The subsidiaries are separate legal entities, while the parent exercises governance through its board, sets the overall strategy, and coordinates capital allocation, risk management, and compliance across the group. Many groups also centralize functions such as finance, human resources, IT, and procurement.

Accounting usually requires consolidated financial statements for the parent and its subsidiaries, eliminating intercompany transactions to present the group as a single entity. Legal and tax obligations vary by jurisdiction, but common issues include transfer pricing, intra-group financing, and responsibility for group liabilities.

Advantages of having a parent company include risk isolation, easier capital access, and potential economies of scale. Disadvantages include regulatory complexity, increased reporting requirements, and potential conflicts of interest between the parent and its subsidiaries.