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Liability of the Holding Company for the Debts of its Insolvent Subsidiaries
Английски език
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This study deals with the liability of the holding company for the debts of its insolvent subsidiaries. It identifies four types of behaviour practised by corporate groups which may prejudice the interests of external creditors: the subservient subsidiary; the inadequately financed subsidiary; the fragmented economic enterprise; and the use of misleading group persona techniques. The author proposes that in certain well-defined circumstances "equity law" should give way to an "enterprise" analysis and holding company or group liability be imposed in respect of the debts of insolvent subsidiaries. Crucial to the text's discussion are two related principles of English company law: that a company is a juridical entity separate from its shareholders, and that the shareholders are not liable for the debts of their company.
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Английски език
