On the Effectiveness of Executive Education of Corporate Professionals regarding the Role and Responsibility of Group Management from a Business Law Perspective.

Abstract

Business professionals should keep up with (legal) changes in their business practise and environment. This research project offers some insight in the effectiveness of executive business law education regarding the role and responsibilities of group management. Because specific law is absent on this subject, corporate professionals responsible for the design and judgement of the corporate legal structure, like management accountants and lawyers, should be aware of the risk that their view on the subject differs amongst professionals. This study investigates whether corporate professionals have different views on corporate responsibilities and liabilities, using an experimental study based on 40 observations. The case study describes a situation of emerging financial distress in a group which is led by a non-dominant parent. The study finds evidence that management accountants and lawyers differ in their fundamental view on the role of the parent company as group manager. It is important for those responsible for executive education in accounting, but also directors, accountants, controllers and regulators as well as legal advisors to be aware of the existence of these differing views as this can also help to reduce possible waste of society’s resources as a consequence of litigation.