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1 results

  • 6 - Governance 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 133-162

  • Summary

    This chapter discusses how internal governance mechanisms may diverge from the legal starting point of a limited liability entity as directed by its corporate board and that shareholders (including a parent company) are only permitted to exercise their power through the means of the general meeting. I have, to analyze internal governance mechanisms on the outskirts of the law, drawn on management literature to broaden the rather narrow discussions in corporate law on the strategic and coordinative means of a parent company. This chapter therefore, through this, adds a discussion of the factual divergence between law and practice and between formal ownership structures and internal control structures to corporate law literature.