> For the complete documentation index, see [llms.txt](https://docs.kernel.ai/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.kernel.ai/data/hierarchies/state-owned-companies.md).

# State-owned companies

Where government-owned company hierarchies stop, with visual examples

A state-owned company's **top parent can be a national, state or provincial, or local government**. It does not automatically roll up to the national government.

## Public ownership rules

* **Companies:** follow more than 50% ownership or evidenced voting or governance control. The owner can be a holding company, sovereign wealth fund, named ministry shareholder, or government. Minority investment without control does not qualify.
* **Public bodies:** follow supported organizational relationships, such as agency status or an express legal power of direction. Funding, regulation, or general oversight alone does not establish a parent.
* **Government roots:** national, state or provincial, and local governments each stand independently. Geographic containment does not create a parent relationship between them.

The chain can also stop at a holding company, fund, or independent statutory body if no parent above it is established.

## Examples

Fictional examples assuming verified relationships. Arrows run from parent to child; sage marks the top parent.

{% tabs %}
{% tab title="National" %}

```mermaid
flowchart TD
  accTitle: National ownership through a holding company
  accDescr: The Government of Country A is the top parent. It owns State Energy Holdings, which owns National Energy Ltd. Both ownership stakes are 100 percent.
  GOV["Government of Country A<br/>Top parent"]:::root
  HOLD["State Energy Holdings<br/>Immediate parent"]:::parent
  CO["National Energy Ltd<br/>Company"]:::company
  GOV -->|Owns 100%| HOLD
  HOLD -->|Owns 100%| CO
  classDef root fill:#b5c4b6,stroke:#687d6d,color:#343539,stroke-width:2px
  classDef parent fill:#edf2ee,stroke:#98a59c,color:#343539
  classDef company fill:#ffffff,stroke:#b7c1ba,color:#343539
  linkStyle default stroke:#687d6d,stroke-width:1.5px
```

{% endtab %}

{% tab title="Provincial" %}

```mermaid
flowchart TD
  accTitle: Provincial ownership through a ministry
  accDescr: The Government of Province B is the top parent. Its Transport Ministry is the named sole shareholder of Provincial Rail Ltd. There is no national government above Province B in this hierarchy.
  GOV["Government of Province B<br/>Top parent"]:::root
  MIN["Provincial Transport Ministry<br/>Immediate parent"]:::parent
  CO["Provincial Rail Ltd<br/>Company"]:::company
  GOV -->|Contains the ministry| MIN
  MIN -->|Named shareholder: 100%| CO
  classDef root fill:#b5c4b6,stroke:#687d6d,color:#343539,stroke-width:2px
  classDef parent fill:#edf2ee,stroke:#98a59c,color:#343539
  classDef company fill:#ffffff,stroke:#b7c1ba,color:#343539
  linkStyle default stroke:#687d6d,stroke-width:1.5px
```

{% endtab %}

{% tab title="Local" %}

```mermaid
flowchart TD
  accTitle: Direct ownership by a city
  accDescr: The City of C owns 100 percent of City Water Ltd and is both its immediate parent and top parent.
  GOV["City of C<br/>Immediate parent and top parent"]:::root
  CO["City Water Ltd<br/>Company"]:::company
  GOV -->|Owns 100%| CO
  classDef root fill:#b5c4b6,stroke:#687d6d,color:#343539,stroke-width:2px
  classDef company fill:#ffffff,stroke:#b7c1ba,color:#343539
  linkStyle default stroke:#687d6d,stroke-width:1.5px
```

{% endtab %}
{% endtabs %}

See [Parent relationships](/data/hierarchies/parent-relationships.md) for field definitions and [Entity categories](/data/entity-data/entity-categories.md) for company versus government classification.