Central management in corporate groups and the liability of the parent company

Joint stock companies, which can be defined as a model of business organization and as a legal construction completed with a legal personality, defined by law based on its fundamental components, are being substituted ?progressively- by another model of business organization, mostly due to reasons of economical order, pushing enterprises to constantly increase their scale: the corporate groups, which are neither regulated by means of a dedicated legislation, nor recognized as independent legal entities under law, and accordingly, whose governing principles are not set forth by any written legislation but are built upon the foundations established by the general legal practice. The notion of ?grand enterprise? resulting from the amalgamation of the economical power may be qualified as the dark side of the business practice, from a Turkish law standpoint in particular. In the light of the above, the subject matter of this thesis is the central management ?the founding notion of the corporate groups- and the liability of the parent companies arising the exercise thereof, in the context of corporate groups. Keywords : Corporate groups, control, parent company, liability.