EFFECTIVE MANAGEMENT IN A GROUP OF COMAPNIES

Abstract

The paper discusses different modalities of effective management in various types of corporate groups. The definition of a group of companies – two or more companies with a common management – presupposes a certain degree of managerial integration. On the other hand, the fact that each of the companies retains its own legal personality suggests at least a partial managerial independence. Therefore, the limits of mutual influence of companies that belong to the same group are determined by opposing centrifugal and centripetal forces. The law of group of companies has to precisely define those limits and to place them at disposal to entrepreneurs. It will be demonstrated that those limits are not the same for all types of corporate groups. The paper analyses three types of corporate group between a parent and a subsidiary company – contractual group of companies, group of integrated companies and factual (de facto) group of companies.