Article: Unveiling the Influence: The Dynamics of Corporate Group Structures - European Company Law View Article: Unveiling the Influence: The Dynamics of Corporate Group Structures by - European Company Law Article: Unveiling the Influence: The Dynamics of Corporate Group Structures 22 2

This paper explores the intricate dynamics of corporate group structures, focusing on the influence of corporate power and the potential risks and inefficiencies associated with managerialism. It begins by defining corporate groups, highlighting the varying definitions across jurisdictions and contexts. The paper then examines the reasons for the formation of corporate groups, emphasizing benefits such as asset partitioning and risk management. It also addresses the challenges posed by corporate groups, including issues of power concentration, agency problems, and opportunism. The analysis underscores the need for a more coherent legal framework that aligns with the economic realities of modern corporate structures. By advocating for an enterprise approach the paper argues for enhanced regulatory oversight and state intervention justified by the concession theory of the corporation. This shift aims to ensure a more equitable distribution of the benefits and burdens of corporate activities, contributing to a fairer corporate landscape.

European Company Law