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Identifying Decision-Making Mechanisms in Group Systems
from Part III - Decomposing Corporate Groups
Published online by Cambridge University Press: 04 May 2022
This chapter discusses how internal governance mechanisms may diverge from the legal starting point of a limited liability entity as directed by its corporate board and that shareholders (including a parent company) are only permitted to exercise their power through the means of the general meeting. I have, to analyze internal governance mechanisms on the outskirts of the law, drawn on management literature to broaden the rather narrow discussions in corporate law on the strategic and coordinative means of a parent company. This chapter therefore, through this, adds a discussion of the factual divergence between law and practice and between formal ownership structures and internal control structures to corporate law literature.
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