Holding Company Liability for Debts of Its Subsidiaries
Bond Law Review
Volume 10 | Issue 2 Article 6
12-1-1998
Holding Company Liability for Debts of its Subsidiaries: Corporate Governance Implications
Damien Murphy
Follow this and additional works at: http://epublications.bond.edu.au/blr Recommended Citation
Murphy, Damien (1998) "Holding Company Liability for Debts of its Subsidiaries: Corporate Governance Implications," Bond Law Review: Vol. 10: Iss. 2, Article 6. Available at: http://epublications.bond.edu.au/blr/vol10/iss2/6
This Article is brought to you by the Faculty of Law at ePublications@bond. It has been accepted for inclusion in Bond Law Review by an authorized administrator of ePublications@bond. For more information, please contact Bond University 's Repository Coordinator.
Holding Company Liability for Debts of its Subsidiaries: Corporate Governance Implications
Abstract
[extract] This article will attempt to consider the corporate governance implications for groups of companies arising from an analysis of the circumstances in which a holding company may be liable for the debts and obligations of its subsidiaries. I consider this methodology is appropriate because it suggests restraints upon the management or control of a subsidiary by a holding company. If a holding company is responsible also for the liabilities incurred by a subsidiary, then we can expect that circumstance to result in careful consideration by the management or controllers of the holding company of that company’s relationship with the subsidiary and how, if at all, the holding company controls or manages the resources of the subsidiary.
Keywords
holding companies, corporate governance, subsidiaries, liability, shadow directors
This article is available in Bond Law Review: http://epublications.bond.edu.au/blr/vol10/iss2/6
Murphy: Holding Company Liability for Debts of its Subsidiaries
HOLDING COMPANY LIABILITY FOR DEBTS OF ITS SUBSIDIARIES: CORPORATE GOVERNANCE IMPLICATIONS
By DAMIEN MURPHY, BEc
Volume 10 | Issue 2 Article 6
12-1-1998
Holding Company Liability for Debts of its Subsidiaries: Corporate Governance Implications
Damien Murphy
Follow this and additional works at: http://epublications.bond.edu.au/blr Recommended Citation
Murphy, Damien (1998) "Holding Company Liability for Debts of its Subsidiaries: Corporate Governance Implications," Bond Law Review: Vol. 10: Iss. 2, Article 6. Available at: http://epublications.bond.edu.au/blr/vol10/iss2/6
This Article is brought to you by the Faculty of Law at ePublications@bond. It has been accepted for inclusion in Bond Law Review by an authorized administrator of ePublications@bond. For more information, please contact Bond University 's Repository Coordinator.
Holding Company Liability for Debts of its Subsidiaries: Corporate Governance Implications
Abstract
[extract] This article will attempt to consider the corporate governance implications for groups of companies arising from an analysis of the circumstances in which a holding company may be liable for the debts and obligations of its subsidiaries. I consider this methodology is appropriate because it suggests restraints upon the management or control of a subsidiary by a holding company. If a holding company is responsible also for the liabilities incurred by a subsidiary, then we can expect that circumstance to result in careful consideration by the management or controllers of the holding company of that company’s relationship with the subsidiary and how, if at all, the holding company controls or manages the resources of the subsidiary.
Keywords
holding companies, corporate governance, subsidiaries, liability, shadow directors
This article is available in Bond Law Review: http://epublications.bond.edu.au/blr/vol10/iss2/6
Murphy: Holding Company Liability for Debts of its Subsidiaries
HOLDING COMPANY LIABILITY FOR DEBTS OF ITS SUBSIDIARIES: CORPORATE GOVERNANCE IMPLICATIONS
By DAMIEN MURPHY, BEc