hovedselskapet

Hovedselskapet is the term used in Norwegian business language to denote the parent company in a corporate group. It is the entity that controls one or more subsidiaries, usually by owning a majority of voting shares or by other arrangements that enable it to appoint the majority of the board and direct policy.

Control may be achieved through ownership, contractual rights, or the ability to influence decisions. The parent company is responsible for strategic leadership, capital allocation, risk management, and governance for the group as a whole. It sets long-term objectives, coordinates activities, and provides support functions such as financing, IT, and human resources to subsidiaries.

Financial reporting: the parent prepares the standalone financial statements for its own affairs and the group accounts for the consolidated group, which include subsidiaries' assets, liabilities, income and expenses. Intercompany transactions and balances are eliminated in consolidation. Depending on jurisdiction and listing status, group accounts may be prepared under IFRS or local GAAP.

Relationship to subsidiaries: the parent exercises oversight but typically does not operate day-to-day operations in all subsidiaries; management teams in subsidiaries carry out operations while the parent monitors performance, risk, and compliance.

Legal and governance: the parent is responsible for ensuring legal compliance and implementing governance policies across the group. The ownership structure, board composition, and reporting requirements are often described in corporate charters and regulatory filings.

See also: datterselskap, konsern, konsernregnskap, holding companies.