Associateettevõtted

Associateettevõtted is an Estonian term that translates to "associated companies" or "affiliate companies." In Estonian company law, it refers to companies that are related to each other through significant influence or control. This relationship is typically established through ownership of voting shares, where one company holds a substantial stake in another, or through a common director or management. The concept is crucial for understanding the economic and legal connections between different entities within a corporate group.

The Estonian Commercial Code outlines the conditions under which companies are considered associated. Generally, if a company holds more than 20% of the voting shares of another company, or if a company can significantly influence the management of another company, they are deemed to be associated. This association can also arise if the same individuals or entities have the power to appoint or remove the majority of the management board members of both companies.

The legal implications of being an associateettevõte are important for financial reporting, taxation, and regulatory compliance. For instance, consolidated financial statements are often required for groups of associated companies to present a true and fair view of their overall financial position. Furthermore, certain transactions between associated companies may be subject to specific disclosure requirements or tax regulations to prevent artificial profit shifting or tax avoidance. The determination of associated companies is a key aspect of corporate governance and economic analysis in Estonia.