Volume 21, Issue 3 (2017)
CLR 2017, 21(3): 37-74 |
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Rezaee A. Liability of a Mother Company for its Subsidiary (Comparative Study in English And Iranian Legal Systems). CLR 2017; 21 (3) :37-74
URL: http://clr.modares.ac.ir/article-20-1442-en.html
URL: http://clr.modares.ac.ir/article-20-1442-en.html
Assistant Professor, Private and Islamic Law Department, Faculty of Law and Political Science, Shiraz University, Shiraz, Iran
Abstract: (10466 Views)
If the Company earns the acquisition of a majority share in another company, takes over the control and supervision of the company, the first company is called parent company and another is subsidiary. Subordination relationship between the two companies is often done to earn maximum profit, in some cases, it can lead to abuse. In such cases, and according to the principle of independent legal personality of companies, Is the parent company responsible for the harmful actions of its subsidiary or not? In English legal system, especially by resorting to the principle of "piercing the corporate veil", the parent company is responsible. In Iran, the procedure in this case is not settled, but according to the juridical rule, "everyone gains benefit, should tolerate losses" and other principles, can be ruled the responsibility of the parent company.
Received: 2016/07/5 | Accepted: 2017/11/10 | Published: 2017/11/22
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