Report on the Recognition of the Interest of the Group

47 Pages Posted: 11 Jan 2017

See all articles by John Armour

John Armour

University of Oxford - Faculty of Law; University of Oxford - Said Business School; European Corporate Governance Institute (ECGI)

Gintautas Bartkus

Vilnius University - Law Faculty; European Corporate Governance Institute (ECGI)

Blanaid J. Clarke

Trinity College Dublin - School of Law

Pierre-Henri Conac

University of Luxembourg; European Corporate Governance Institute (ECGI)

H. J. de Kluiver

University of Amsterdam - Faculty of Law

Holger Fleischer

Max Planck Institute for Comparative and International Private Law

Mónica Fuentes

Universidad Complutense de Madrid (UCM)

Jesper Lau Hansen

University of Copenhagen - Faculty of Law (FOCOFIMA)

Vanessa Knapp

Queen Mary University of London

Marco Lamandini

University of Bologna - Department of Business Law

Arkadiusz Radwan

Allerhand Institute; Vytautas Magnus University - Faculty of Law; Kubas Kos Gałkowski

Christoph Teichmann

University of Würzburg

R.H. van het Kaar

Independent

Martin Winner

Vienna University of Economics and Business - Department of Business Law

Date Written: October 30, 2016

Abstract

On 26 January 2015, the European Commission requested the Informal Group of Company Law Experts (ICLEG) to consider the issue of the recognition of group interest. In response to this call one member, Pierre-Henri Conac, was charged with producing a report on behalf of the Group. John Armour provided specific input in the preparation of this report.

This report sets out the opinion of the ICLEG as to issues that the European Commission may wish to consider. The recognition of the interest of the group has gained further acceptance in the Member States in recent years. However, at the EU level, a specific regime for groups is not developed. The report addresses problems which would be solved and presents advantages, including in relation to more effective group governance and risk management in the banking sector as well as the operation of the Banking Recovery and Resolution Directive (BRRD).

The report includes recommendations. Notably, the Commission could consult on whether there should be an action at the EU level recognizing the interest of the group for 100 % owned and non 100% owned subsidiaries. Such recognition could take the form of a safe harbour and could go along the lines of the “Rozenblum” formula. The consultation should also cover whether an action at the EU level should include, in 100% owned subsidiaries, the right of the parent company to give instructions to the subsidiary and whether this right as well as the recognition of the group interest should be an option for Member States or an option for companies themselves.

Keywords: European Commission, Company Law, Group Interest, Groups of companies

JEL Classification: G34, G38, H77, K22, K31

Suggested Citation

Armour, John and Bartkus, Gintautas and Clarke, Blanaid J. and Conac, Pierre-Henri and de Kluiver, H. J. and Fleischer, Holger and Fuentes, Mónica and Hansen, Jesper Lau and Knapp, Vanessa and Lamandini, Marco and Radwan, Arkadiusz and Teichmann, Christoph and van het Kaar, R.H. and Winner, Martin, Report on the Recognition of the Interest of the Group (October 30, 2016). Available at SSRN: https://ssrn.com/abstract=2888863 or http://dx.doi.org/10.2139/ssrn.2888863

John Armour

University of Oxford - Faculty of Law ( email )

Oriel College
Oxford, OX1 4EW
United Kingdom
+44 1865 286544 (Phone)

University of Oxford - Said Business School ( email )

Park End Street
Oxford, OX1 1HP
Great Britain

European Corporate Governance Institute (ECGI) ( email )

c/o ECARES ULB CP 114
B-1050 Brussels
Belgium

HOME PAGE: http://www.ecgi.org

Gintautas Bartkus

Vilnius University - Law Faculty ( email )

Saulėtekio ave. 9, building I
Vilnius, LT-10222
Lithuania

HOME PAGE: http://www.tf.vu.lt

European Corporate Governance Institute (ECGI)

c/o ECARES ULB CP 114
B-1050 Brussels
Belgium

HOME PAGE: http://www.ecgi.org

Blanaid J. Clarke

Trinity College Dublin - School of Law ( email )

House 39, New Square
Dublin 2
Ireland
Ph 00353 (0)18961632 (Phone)

Pierre-Henri Conac (Contact Author)

University of Luxembourg ( email )

162a, avenue de la Faïencerie
Luxembourg-Limpertsberg, L-1511
Luxembourg
00352 46 66 44 68 20 (Phone)
00352 46 66 44 68 11 (Fax)

HOME PAGE: http://wwwen.uni.lu/

European Corporate Governance Institute (ECGI)

c/o ECARES ULB CP 114
B-1050 Brussels
Belgium

HOME PAGE: http://http:/www.ecgi.org

H. J. De Kluiver

University of Amsterdam - Faculty of Law ( email )

Amsterdam, 1018 WB
Netherlands

Holger Fleischer

Max Planck Institute for Comparative and International Private Law ( email )

Mittelweg 187
Hamburg, 20148
Germany

Mónica Fuentes

Universidad Complutense de Madrid (UCM) ( email )

Facultad de Derecho. Avda. Complutense s/n
Madrid, Madrid 28040
Spain

Jesper Lau Hansen

University of Copenhagen - Faculty of Law (FOCOFIMA) ( email )

Studiestraede 6
Studiestrade 6
Copenhagen, DK-1455
Denmark

HOME PAGE: http://www.jur.ku.dk

Vanessa Knapp

Queen Mary University of London ( email )

Mile End Rd
Mile End Road
London, London E1 4NS
United Kingdom

Marco Lamandini

University of Bologna - Department of Business Law ( email )

via San Giacomo, 3
Bologna, Bologna
Italy

HOME PAGE: http://www.diritto.unibo.it

Arkadiusz Radwan

Allerhand Institute ( email )

Plac Sikorskiego 2/7
Kraków, 31-115
Poland

HOME PAGE: http://www.allerhand.pl

Vytautas Magnus University - Faculty of Law ( email )

Jonavos g. 66
Kaunas, LT-44191
Lithuania

Kubas Kos Gałkowski ( email )

Nowa Kamienica
ul. Rakowicka 7
Kraków, 31-511
Poland

HOME PAGE: http://www.kkg.pl

Christoph Teichmann

University of Würzburg ( email )

Sanderring 2
Würzburg, DE 97070
Germany

R.H. Van het Kaar

Independent ( email )

No Address Available

Martin Winner

Vienna University of Economics and Business - Department of Business Law ( email )

Welthandelsplatz 1
Vienna, A-1020
Austria

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