Possibility of the Manager and the Members of the Board of the Subsidiary to Act in the Interests of the Group of Companies
Articles
Edvinas Bakanauskas
Vilnius University, Lithuania
https://orcid.org/0000-0002-5669-0974
Published 2021-06-21
https://doi.org/10.15388/Teise.2021.119.5
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Keywords

parent company
subsidiary
company group
interest of the group of companies

How to Cite

Bakanauskas, E. (2021) “Possibility of the Manager and the Members of the Board of the Subsidiary to Act in the Interests of the Group of Companies”, Teisė, 119, pp. 89–104. doi:10.15388/Teise.2021.119.5.

Abstract

According to the current legal regulation of Lithuanian companies, the manager and the members of the board of the subsidiary have a duty to act only in the interests of the subsidiary and do not have the opportunity to act in the interests of the group of companies. Meanwhile, the provisions of Section 16 of Chapter 15 of European Model Companies Act provide the possibility for the manager and the members of the board of the subsidiary to act in the interests of the group of companies. Accordingly, the present article analyses whether the current legal framework in Lithuania should be changed by providing the possibility for the manager and the members of the board of the subsidiary to act in the interests of the group of companies.

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