Say there is one large company that consists of many smaller companies. The former is 100% shareholder of the latter, so there is no doubt about who owns what.

One of those smaller companies exists and is registered as such in a different country.

Can the owning company be prosecuted in its country for something the smaller company does (of its own accord or as instructed to by the owning company) inside the other country? For the sake of argument, I'm not talking about murder or anything grotesque, but rather an illegal activity in the sense of civil laws about e.g. software use and intellectual property and/or copyright, which often differ subtly between countries across the world. No products or anything else containing anything "illegal" is transferred to the owning company's country (which would be obviously prosecutable).

  • 1
    It's possible under corporate or business law, but right now, this is far too broad a question unless you name the actual jurisdictions. – BlueDogRanch Oct 10 '18 at 14:29
  • @BlueDogRanch I was thinking of the US or Canada and an EU country or two EU countries (e.g. Germany has somewhat stricter copyright laws than other neighbouring countries). – rubenvb Oct 10 '18 at 14:31
  • What kind of companies? Corporations? – BlueDogRanch Oct 10 '18 at 14:33
  • I'd suggest "no" - my logic being that (a) A company is separate to its shareholders, and shareholders liability is limited to the assets of the company. The parent company would be a shareholder and thus not typically be liable for the actions of the child company as it may be the same BUSINESS, but its a DIFFERENT COMPANY, assuming it is some kind of limited liability company. entity). – davidgo Oct 11 '18 at 1:51

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Browse other questions tagged or ask your own question.