By Charlotte Tybjerg Sørensen AAU Communication and Public Affairs
Photo: Djøf, Danish Association of Lawyers, Economists, Political and Social Scientists

The winning thesis examines the rights and obligations of parent companies in subsidiaries.

Anna and Julius talk about their Master’s thesis:

"The thesis examines one of the most pressing and unresolved questions in Danish company law: Do parent companies have a right and/or duty to manage their subsidiaries? If so, what do these rights/duties contain and how do they intersect? Through a legal dogmatic analysis, we conclude that Danish company law does not provide a general direct legal basis for a parent company to exercise management authority over its subsidiaries."

The thesis also demonstrates that other areas of law increasingly impose specific supervisory and management obligations on parent companies in relation to their subsidiaries while also holding them liable for the actions of those subsidiaries.

"This creates a fundamental inconsistency: Parent companies have a duty to react, but lack the legal authority to take action. We argue that this tension necessitates the codification of a certain group management authority, At the same time, we show that introducing such a right would inevitably give rise to a range of new issues," the two award winners say.

The jury's reasoning 

The jury justifies the choice of Anna Alici and Julius Jellesen Steffensen's winning Master’s thesis as follows:  

"The thesis stands out for its rigorous analysis of a complex and commercially significant area of law. It is of a high academic standard and addresses an issue with direct relevance to the practical operation of corporate groups. Moreover, the analysis makes a well-founded contribution to the ongoing discussion on how the tension between legal authority and legal duty should be addressed."

Hope that the thesis makes a difference

Anna Alici and Julius Jellesen Steffensen, who have now graduated and use the credential LL.M. from Aalborg University, hope that their Master’s thesis can help create clarity and understanding of the area.

I hope that this thesis will help clarify the relationship between a parent company's right and duty to manage its subsidiaries, for the benefit of both legislators and companies in practice, Ann Alici says.

They have the following advice for new Master's thesis students:

"Start with a current issue. It strengthens both your motivation along the way and the relevance of the thesis in practice," says Julius Jellesen Steffensen.

"Choose a topic in a area that you can see your future self working in. This way, you maintain your motivation and you acquire knowledge that you can then use in your working life," says Anna Alici.

Anna Alici is now employed at the law firm DLA Piper as an assistant attorney in Corporate M&A in Aarhus and Julius is now employed at the law firm Accura as an assistant attorney in Renewable Energy Investments.

Read the award-winning Master’s thesis here.

Translation by LeeAnn Iovanni, AAU Communication and Public Affairs