Groepsmaatschappij
Group company
A group company is a legal entity that forms part of a group of companies under central management.
Article 2:24b BW defines a group as an economic unit in which legal entities and companies are organisationally linked. A group company is accordingly a company that forms part of this unit and is subject to the influence of central management.
The concept is relevant to group liability, consolidated financial statements and fiscal unities. In practice, it is used to denote the relationship between a holding company and its subsidiaries, for instance in cases of directors’ liability or the transfer of shares within the group.
“The subsidiary BV was considered a group company and therefore fell under the central management of the holding company.”
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