‘Rethinking Group Company Liability’

“According to long-standing and fundamental English corporate law principles, limited liability applies in the context of group companies to the same extent as it does in stand-alone entities. As a consequence, a parent company is normally not liable for legal infractions and unpaid debts at the level of its subsidiaries. However, particularly in relation to torts committed or facilitated by multinational corporations, the wisdom of insulating parent companies from liability is questionable …” (more)

[Martin Petrin and Barnali Choudhury, Oxford Business Law Blog, 24 January]

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