An analysis of the supply chain principle for the UK’s overseas companies

Abstract

PurposeThe purpose of this paper is to analyse how the liabilities arise in the UK-based parent company for wrongdoings of its overseas subsidiaries, especially under law of tort.Design/methodology/approachQualitative methods have been used in this paper, using both primary and secondary data, i.e. Books, case Laws, legislations, international laws and journal articles.FindingsThe English Courts are, now, more broadly accepting the allegations against the UK-based parent companies for the actions of its subsidiaries, especially by improving the access to the remedy in the UK for foreign victims of corporate related harms, though concern remains in the case of criminal liabilities. Additionally, in case of the civil litigations, the early settlement of a dispute is also causing pressure to the victim by liming the wider deterrent effect.Originality/valueThis paper will help the lawyers and academic in the field of international corporate law, especially in the tortious claim of an overseas victim in the UK Court. Moreover, this paper identifies the lack of proper legislative guidance in this field.