CONTRACTUAL EFFECT

Contractual Effect of a Company's Articles

Contractual Effect of a Company's Articles

Introduction

The Enterprise groups are a business reality in the current economic system. The group's business structure consists of various legal subjects, each formally independent legal personality coated and distinct but yet act in a common economic management, causing a separation between material reality and legal forms.

While the group may be composed of legal entities of various kinds (partnerships, corporations, foundations, public or private law) and also by individuals or organized physical as entrepreneurs, the reality is that business groups are usually formed by companies.

Moreover, the universal fact is that business groups have effects in several areas, including the technical, financial and legal. From the perspective of law, business groups have been addressed piecemeal by law. Tax law has also turned its attention to the group of companies regulating relationships and transactions that take place inside among the companies that comprise it, to ensure the implementation of taxes and levies.

Recently also the Contractual Law has focused its concern on this phenomenon, driven by the desire to set certain rules that ensure safe and proper exercise of contractual rights under the operation of groups of companies.

The Contractual Problem Posed By Groups of Companies: The Force of Contractual Rights

The issue of employment impact of business groups is framed in general, in the broader phenomenon of the decentralization of production, i.e. contractual law implications of new forms of business organization, characterized by processes outsourcing of production activities - subcontracting and supply services - and precisely the groups of companies.

The incontrovertible fact is that the groups are part of an increasingly recurring form of organization of business activities. Meanwhile, contractual law, legal discipline, has emerged as centre of normative imputation.

Therefore, at present, the contractual law is facing the challenge of adapting to this new reality by establishing rules governing the employment relationship within the groups. Otherwise, you run the risk of widening the gap between the rule of law and fact, so common in this discipline.

On the other hand, one of the basic concepts that structure the economic and productive legal system is the separate legal personality and limited liability, an institution that is the focus of legal debate posed by groups of companies and usually productive decentralization.

The group of companies has significant effects in the field of contractual relations, since it jeopardizes the validity of the contractual rights of workers linked to the group companies: on one hand, confuses the identity of one of the parties employment contract, i.e. the employer, and other, confusing the scope and size of the company as an entity in which contractual rights are exercised. Both situations present impact on the realization of individual rights and collective labour.

Enterprise Groups in the Contractual Law in UK

The absence of a specific legal regulation of the phenomenon of business groups in the contractual law, contrasts with that made in other legal disciplines such as Business, Administrative, Tax, Social Security and Community, ...