The State's goal as owner
Article | Last updated: 08/02/2023 | Ministry of Trade, Industry and Fisheries
It is important for the State that the company is managed responsibly, which entails acting in an ethical manner and identifying and managing the company's impact on people, society and the environment. A company will generally not be able to generate returns and remain competitive over time without balancing economic, social and environmental factors.
The highest possible return over time in a sustainable manner
The State’s goal as owner in the companies in Category 1 is the highest possible return over time in a sustainable manner.
Highest possible means that the return must be maximised by the company seeking to generate the highest possible value from the equity. The goal of maximising returns is a prerequisite for good resource allocation in each of the companies. In principle, a company cannot create value and remain competitive if its ownership and operation are not based on the goal of the highest possible return over time within an acceptable level of risk. It is the company's total return, including dividends, that forms the basis for assessing goal attainment.
Over time means that the State is an owner with a long-term perspective and assesses the companies' goal attainment in the short and long term.
In a sustainable manner presupposes that the companies balance economic, social and environmental factors in a manner that contributes to the highest possible return over time without reducing the ability of future generations to meet their own needs.
The State's goal shall be attained in accordance with the provisions stipulated in the articles of association. The companies in Category 1 primarily operate in competition with others.
Sustainable and most efficient possible attainment of public policy goals
The State as owner has public policy goals for companies in Category 2. The State’s public policy goals vary between the companies, but for all companies the goal has to be attained in a sustainable manner and as efficiently as possible.
Sustainable presupposes that the companies balance economic, social and environmental factors in a manner that contributes to long-term goal attainment without reducing the ability of future generations to meet their own needs.
The most efficient possible attainment of public policy goals means that resources are allocated to activities that result in both the highest possible public policy goal attainment and that the activities are carried out as cost-effectively as possible. For example, this can entail that the company works to achieve the highest possible goal attainment with the available resources, or delivers on a given goal with as few resources as possible within an acceptable risk.
Clearly defined goals are generally a prerequisite for good resource allocation in each of the companies. For most companies, it will be relevant that the public policy goal can be maximised.
For the wholly-owned companies, the State's rationale for ownership and the State's public policy goal as owner will normally be reflected in the provision stipulating the companies’ activities (object) and any other provisions in the companies’ articles of association. In the partly-owned companies, the State cooperates with other shareholders on drafting the company's articles of association.
The companies in Category 2 do not primarily operate in competition with others. Some of the companies may also engage in activities that are in competition with others. For these activities, the State normally has the goal of the highest possible return over time in a sustainable manner. The rules relating to state aid also set limits for this.