Directors of subsidiaries: managing the risks | Practical Law

Directors of subsidiaries: managing the risks | Practical Law

In a recent Privy Council decision, a parent company was found liable for dishonestly assisting in a breach of fiduciary duty by the nominee director of its offshore subsidiary that simply followed the parent’s instructions. The decision demonstrates the risks to individual directors and the parent company if the parent exercises too much control over a subsidiary.

Directors of subsidiaries: managing the risks

Practical Law UK Articles 4-619-7908 (Approx. 5 pages)

Directors of subsidiaries: managing the risks

by John O’Connor and Peter Bateman, CMS Cameron McKenna LLP
Published on 29 Oct 2015United Kingdom
In a recent Privy Council decision, a parent company was found liable for dishonestly assisting in a breach of fiduciary duty by the nominee director of its offshore subsidiary that simply followed the parent’s instructions. The decision demonstrates the risks to individual directors and the parent company if the parent exercises too much control over a subsidiary.