Insolvency of groups of companies

Bob Wessels and Defne Taşman

Chapter 10 in The European Insolvency Regulation, 2026, pp 97-113 from Edward Elgar Publishing

Abstract: The EIR 2015 introduced a new chapter on group insolvencies with the objective of achieving efficient administration of proceedings relating to different companies forming part of a group. To that end, the EIR preserves the principle of separate legal personality and rejects group COMI or consolidation. It adds mechanisms to improve coordination, offering two sets of tools: (1) imposing cooperation and communication duties on courts and insolvency practitioners and (2) addressing the powers of the practitioners. The EIR 2015 acknowledges the economic, financial and organisational reality of complex corporate structures and introduces an autonomous definition of a group of companies as a parent undertaking and all its subsidiary undertakings. The parent must control, directly or indirectly, its subsidiaries, and develop consolidated financial statements, referring to Directive 2013/34/EU regarding consolidated financial statements. The EIR highlights cooperation in group insolvencies, optional group coordination proceedings, and voluntary cross-border insolvency protocols for groups of companies.

Keywords: Group Insolvency; Directive 2013/34/EU; Accounting-Based Concept; Vertical and Horizontal Integration; Group Coordinator; JudgeCo Principles; Group Coordination Proceedings; Protocols (search for similar items in EconPapers)
Date: 2026
ISBN: 9781035396436
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