ABSTRACT
Lungowe v Vedanta Resources plc presages more liberal criteria for determining when a parent company owes a duty of care to third parties injured by subsidiary activities. It invokes systems language and points to potential parent company liability for omissions in managing the group. This article develops these ideas. It portrays the corporate group in systems-managerial terms. The parent creates group-wide structures and deploys management strategies and integrating mechanisms that facilitate achievement of its purposes. It has a substantial causal influence upon subsidiary acts and omissions. Prima facie the parent cannot avoid extended liability claims by hiding behind the ‘pure omissions’ rule.
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Christian Witting, The Corporate Group: System, Design and Responsibility, Cambridge Law Journal, volume 80, issue 3, November 2021, pp 581-612, https://doi.org/10.1017/S0008197321000787. Published online by Cambridge University Press: 12 January.
First posted 2022-01-17 17:00:05
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