Liability within Corporate Groups

1. Auflage 2019, Societas Verlagsgesellschaft

Autor: Dr. Rene T. Wieser, LL.M., M. Jur.


Corporate Groups are a common phenomenon in modern economic reality. Nearly all big international companies are organised as a group of companies made up of individual legal entities within one group managing parent or holding company. In such groups of incorporations, there is usually a separation between the management of the group - performed by the parent or holding company - and the everyday decisions of the subsidiaries. However, the parent company has managing power over its subsidiaries and the decisions of the subsidiaries are based often on a decision or an instruction from the parent company. In such case the subsidiaries do not only work exclusively for their own interests. The question arising is now: Who is liable for a suit against a subsidiary in such a Corporate Group?


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