According to provisions of the Companies Act a contract on control and management shall be concluded in the case of forming an contractual group of companies. A contractual group of companies consists of a controlling company and one or more controlled companies that have entered into a contract on control and management.
A contract on control and management is regulated by the provisions of Articles from 554 to 566 of the Companies Act.
Concept, Conclusion, Amendments and Termination
Concept
A contract on control and management is a contract whereby a company grants the management and conduct of operations to another company.
If the companies making up a group based on equality in terms of Article 551 paragraph 2 item 3) of the Companies Act enter into a contract introducing uniform manner of management, such a contract is not be deemed to be a contract on control and management in terms of the Companies Act. Continue reading Contract on control and management