Groepsvennootschap
Group Company
A group company is a company that forms part of a group of companies under common control or management.
In Dutch corporate law, a group company is defined as a legal entity connected to another legal entity through control or a majority interest, as provided in Article 2:24a of the Civil Code. This includes both parent companies and subsidiaries within a group structure.
Qualification as a group company is relevant to various statutory provisions, including tax consolidation, liability within the group and reporting obligations. It also affects the application of rules on competition and insolvency.
In practice, this concept is frequently invoked in mergers and acquisitions, where the group structure is mapped to identify legal risks.
“The group company has granted a loan to its sister company to safeguard liquidity within the group.”
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