Corporate Groups and their Regulation in Georgia

Abstract

While many countries around the world have acknowledged that corporate groups differ from a single company and therefore require specific regulation, Georgia seems to leg behind. The study of corporate groups here is almost non-existent. The aim of this paper is to explore and present challenges that are particularly characteristic to corporate groups and provide recommendations for their regulation in Georgia. With a view to reconcile the law with reality, the object of recommendations is to assist the efficient and effective management of corporate groups, while ensuring appropriate protection for minority shareholders and outsiders. The paper is based on the ample scientific research conducted in both Anglo-American and civil law countries. Situation in Georgia is analysed in the light of the latest Supreme Court Decisions. The study has shown that there is a huge gap in Georgian corporate law where the regulation of corporate groups should be.