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Cross-ownership

Cross-ownership

Cross-ownership means that two or more companies hold significant blocks of shares in each other.

What is cross-ownership?

Cross-ownership (Swedish: korsvist ägande), also called cross-shareholding, means that companies hold significant blocks of shares in each other. It can strengthen cooperation but makes it harder to see who ultimately controls the companies. The Swedish Companies Act restricts, among other things, a subsidiary's ability to own shares in its parent company.

 

Cross-ownership and the ownership picture

In a corporate group, each company's share ledger needs to show exactly who owns what. A consolidated view makes it easier to follow votes and capital, for example during due diligence.

NVR for corporate groups
Henrik Kristensen, NVR
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Related terms

Corporate group

A corporate group is a group of companies where a parent company owns one or more subsidiaries.

Parent company

A parent company is a company that owns and controls one or more subsidiaries.

Subsidiary

A subsidiary is a company controlled by another company, the parent company.

Associated company

An associated company is one in which another company has significant but not controlling influence.