UK Supreme Court – Parent Company Liability for Actions of Foreign Subsidiaries

The UK Supreme Court has handed down its judgment in the case of Okpabi and others v Royal Dutch Shell Plc and another.  This is an important decision that will be of interest to all UK headquartered companies operating in jurisdictions and industries where there is a higher risk of ESG-related issues arising.  Although the judgment made no substantive findings on the facts of the dispute, the Supreme Court’s decision raised important issues with regard to the circumstances in which a parent company will be held liable for the actions of its subsidiary.  The Legal Update at the link below explains the routes by which that parent company liability may arise and provides guidance on the practical steps that companies with foreign subsidiaries can take in order to implement an effective group compliance programme.

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