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  • 4 - Organizational Decoupling

  • from Part III - Decomposing Corporate Groups
  • Linn Anker-Sørensen
  • Book:
    Corporate Groups and Shadow Business Practices
    Published online:
    04 May 2022
    Print publication:
    28 April 2022, pp 75-84

  • Summary

    This chapter identifies the “building blocks” of organizational architecture. A group structure is composed of two or more legal entities. This chapter discusses the significance of the selection of legal entities and is divided into selections on legal form, corporate purpose, and corporate function in a group structure. The chapter contributes to the literature by distinguishing the roles of operative, service, holding, and dormant companies in groups and the implications of these upon the selection of affiliation linkages (Chapter 5) and internal governance mechanisms (Chapter 6).