Parent Company Liability and the European Convention on Human Rights – An Analysis from the Perspective of English Law

Abstract

The difficulties faced by individuals who seek to hold parent companies liable for the conduct of their subsidiaries are well-known. Much less discussed is the question whether international human rights law might require a state to make available a compensatory remedy against a parent company in such circumstances. Drawing on principles of European Convention on Human Rights (ECHR) law, this paper argues that the obligations, first, to create an effective deterrent against activities by private actors which infringe upon human rights and, second, to provide an effective remedy for such activities requires that parent companies be made liable for the conduct of their subsidiaries in certain circumstances. Recent developments in English law on parent company liability are also examined. While these developments bring English law further into line with these ECHR obligations, it is argued that it may still fall short of what the ECHR requires in this context.’ Parent company liability – effective remedy – effective deterrence – duty of care