Recognising the Interests of the Group – Another Attempt to Harmonise the Rules Regulating Groups of Companies in the EU

Abstract

The Commission has announced plans to take initiatives to recognise the concept of ‘group interest’. The intention is to facilitate the coordination of groups of companies in the EU, but to do this, a number of problems need to be addressed. These problems and their possible solutions are analysed here focussing on the different proposals made by different expert groups and the experiences gained in Australia and New Zealand. Whereas it may not be that difficult to allow the subsidiary to act in the interest of the group, it will prove difficult to protect all the stakeholders in the subsidiary. In addition, it is pointed out that the duties and liabilities of the parent company also need to be discussed as part of such an initiative.

Keywords: Groups of companies, group interest

JEL Classification: K22