Chester 01244 405555

Grosvenor Court
Foregate Street Chester
Cheshire CH1 1HG
DX: 19990 Chester

Shrewsbury 01743 443 043

Lakeside House
Oxon Business Park
Shrewsbury SY3 5HJ
DX: 148563 Shrewsbury 14

Manchester 0844 800 8346

Pall Mall Court
61-67 King Street
Manchester M2 4PD

Send us a message
Our Offices

Group of Companies May Be Single Economic Entity

16th January, 2014

When a subsidiary in a group of companies does something, what is the legal position of the holding company that owns the subsidiary?

In some circumstances, the courts might hold the parent company responsible for the actions of the subsidiary – especially if the subsidiary does not conduct its business and make decisions independently of the parent company.

Where the companies constitute, in effect, a ‘single economic unit’, the courts may treat them as a single entity. The same reasoning applies where a joint venture is formed with two companies each owning a 50 per cent interest in the joint venture company.

That reasoning led to a failure by a large chemical company to avoid sanctions imposed by the European Court of Justice for a breach of EU competition law. Two companies held equal shares in a joint venture company and had set up a members’ committee to supervise its business. Both companies were held jointly and severally liable for the JV’s anti-competitive conduct as they had exercised, through the members’ committee, decisive influence over its conduct on the market.

If you have concerns that the business practices of your competitors or your firm may be in breach of competition law, contact Mark Briegal on 01244 405563 or email [email protected]

 

You might also be interested in...

Legal expert’s data protection workshops pull in the crowds

22nd May, 2018

With the General Data Protection Regulation (GDPR) coming into force in May, businesses across Shropshire have been flocking to hear more about the new laws Paul Bennett, a partner at law firm Aaron & Partners LLP, has been delivering seminars in partnership with the Shropshire Chamber of Commerce An employment solicitor from Shrewsbury is urging businesses across the... Read More »

Experienced HR leader joins Aaron & Partners LLP

15th May, 2018

Experienced HR leader joins Aaron & Partners LLP Law firm with offices in Chester and Shrewsbury appoints Kate Robertson to drive HR strategy for more than 120 staff and to support the company’s growth Chester law firm Aaron & Partners LLP has strengthened its senior leadership team with the appointment of an experienced human resources manager. Kate Robertson... Read More »

When you should NOT pay the bailiff…

24th April, 2018

Jan Chillery, Insolvency Partner at Aaron & Partners LLP, shares her experience and the reasons why we should be cautious before paying so-called “bailiffs” over the phone or online without vetting them first. My neighbour has told me that recently he had a CCJ (County Court Judgment) against him. A day or so later, he received a phone call... Read More »

Contact Us