Holding Company Liability For Subsidiary Acts And Omissions: A Jurisprudential Analysis Of Indian Legal Accountability
- IJLLR Journal
- Sep 15, 2025
- 1 min read
Dhananjaya B K, PhD Research Scholar at Presidency University, Bangalore
Dr. Prashant Shankar Desai, Professor, School of Law at Presidency University, Bangalore
ABSTRACT
This study investigates when parent companies may bear responsibility for the conduct of subsidiaries under Indian law. Although corporate law in India is grounded in the principle of separate legal personality, courts have increasingly scrutinized its limits in cases involving misconduct or governance failures or violations of public policy. Through an analysis of key legal precedents, statutes, and regulatory frameworks, this paper evaluates when and how a parent company can be held accountable for its subsidiary's acts and omissions in India. The study also explores doctrines such as "piercing the corporate veil" and the role of judicial interpretation in shaping corporate liability in India. The paper highlights the evolving legal landscape and provides recommendations for enhancing accountability within the corporate governance framework.
Keywords: Holding Company Liability; Subsidiary Acts and Omissions; Separate Legal Personality; Piercing the Corporate Veil; Indian Corporate Law; Corporate Governance; Jurisprudential Analysis.
