Content of a Intra Group Compliance Agreement as a risk mitigating factor

Marek Kordík () and Lucia Kurilovská ()
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Marek Kordík: Comenius University in Bratislava, Slovakia
Lucia Kurilovská: Comenius University in Bratislava, Slovakia

Entrepreneurship and Sustainability Issues, 2019, vol. 6, issue 3, 1195-1204

Abstract: The contribution deals with the topic of relationship between the mother company and the daughter company, specifically how to set up, control and verify the compliance rules in the daughters company acc the standards important for the mother company. Current legal and managerial environment require to implement the same lavel as applied by the mother company not only to protect its shares in the subsidiaries but more likely to create a shelter and mitigate possible risk for the conduct of its subsidiary in its country, culture and environment. The contribution shows the possibility to implement the compliance rules and the compliance manangemtn systemof the mother company in the daughter company through the so-called intragroup agreement as a frame to set up a correct control, reporting, consequence management in the daughter company. It also draws a line how the compliance should be taken in the subsidiary in relation to the position of created compliance office, that needs to be stablished and manged in the separate line stream form the line management to ensure its independence. The authors show the relevance of this model also by particular decision of the legal practice, mainly quoting plea bargaining of the accused legal persons from corruption or moneylaundering conducts.

Keywords: compliance; effectiveness; criminal responsibility; post-acquisition; SPV; sanctions; vulnerability; mother-company; daughter-company; intra group relations. (search for similar items in EconPapers)
JEL-codes: M14 M16 (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:ssi:jouesi:v:6:y:2019:i:3:p:1195-1204

DOI: 10.9770/jesi.2019.6.3(10)

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