Groep
Group
A group is an economic unit in which legal persons and companies are organisationally connected.
Under Dutch law, a group is defined as an aggregate of legal entities that are subject to central direction and operate economically as a single unit. This definition is laid down in Article 2:24b of the Dutch Civil Code and is relevant, inter alia, to the consolidation of financial statements and liability matters.
In practice, the concept is relevant in the context of mergers, acquisitions and group financing, as intra-group relationships affect tax treatment, competition law scrutiny and the possibility of setting off receivables and payables within the group.
“The subsidiary company forms part of the group and is therefore required to consolidate its annual financial statements with those of the holding company.”
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