A parent company is an organization that owns enough voting stock in another agency to manage administration and operations by influencing or electing its board of administrators; the second firm being deemed a subsidiary of the parent company. The definition of a mother or father firm differs by jurisdiction, with the definition normally being defined by means of laws coping with corporations in that jurisdiction. In this article, authorized establishment of a corporate body within the context of separate authorized entity have been evaluated. However, in sure situations, it becomes essential to “pierce the corporate veil” and deal with each entity within the context of binding legal guidelines. Limited legal responsibility and corporate group The doctrine of limited liability does not defend the victims of torts towards the involuntary threat of harm.

Therefore, on this case, the application of the principle of separate legal personality of an organization clarifies the … Read More