The Duties of Parent Companies

Hanne Birkmose, Shareholders’ Duties, Kluwer Law International (2017 Forthcoming)

Nordic & European Company Law Working Paper No. 16-10

Posted: 30 Nov 2016

See all articles by Blanaid J. Clarke

Blanaid J. Clarke

Trinity College Dublin - School of Law

Date Written: November 27, 2016

Abstract

The chapter considers the duties of parent companies in respect of the actions or inactions of their subsidiaries. The extent to which the corporate veil may be disregarded and/or liability imposed in such cases is discussed with particular reference to UK company law. Consideration is also given to the alternative approach involving respecting the separate legal personality of the subsidiary but imposing duties directly on the parent company arising from a separate and free-standing duty imposed on the parent company. Through its own actions or omissions, the parent company may have been directly or indirectly involved in the wrongdoing perpetrated by the subsidiary. These duties which may stem from statute, agency, tort or trust are examined. Finally, the chapter evaluates a number of proposals for statutory reform which have been made which involve the imposition of additional duties on parent companies and explores the underlying justification for such proposals.

Keywords: Duties of parent companies, actions/inactions

JEL Classification: K22

Suggested Citation

Clarke, Blanaid J., The Duties of Parent Companies (November 27, 2016). Hanne Birkmose, Shareholders’ Duties, Kluwer Law International (2017 Forthcoming), Nordic & European Company Law Working Paper No. 16-10, Available at SSRN: https://ssrn.com/abstract=2876574

Blanaid J. Clarke (Contact Author)

Trinity College Dublin - School of Law ( email )

House 39, New Square
Dublin 2
Ireland
Ph 00353 (0)18961632 (Phone)

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