Groups of Companies in Swedish Law

Rolf Dotevall

doi:10.4172/2169-0170.1000247

Abstract

Groups of Companies in Swedish Law

Highlights

Corporate groups are often well-known and are producing and selling products of different kinds under a common public persona
Third party often got the impression that a company group is a commercial entity and a legal personality
In the case in which the transaction at an undervalue is with person connected with the company, as a parent company, at a time in the period of, as a main rule, three months from the bankruptcy decision shall according to Ch. 4 Insolvency Act be revoked.A cornerstone in Swedish law in the protection of the creditors to the parent and subsidiary company is the requirement to draw up a consolidated account statement for the whole group of companies

Summary

Introduction

Corporate groups are often well-known and are producing and selling products of different kinds under a common public persona. In the case in which the transaction at an undervalue is with person connected with the company, as a parent company, at a time in the period of, as a main rule, three months from the bankruptcy decision shall according to Ch. 4 Insolvency Act be revoked.A cornerstone in Swedish law in the protection of the creditors to the parent and subsidiary company is the requirement to draw up a consolidated account statement for the whole group of companies. If a shareholder has the function of a shadow director he or she shall compensate damage, according to Ch, 28 Sec. 3 Companies Act, which is caused as a consequence of participation, intentionally or through gross negligence, in any violation of the Companies Act, the applicable annual reports legislation or the company’s articles of association. In Swedish law has concluded that there is a more obvious risk that the veil will be lifted in when it is a question of environmental liability than in other liability cases

Discussion

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Conclusions