Conglomerate Accountability: Australian Legal Policy Trends for EU Consideration

Abstract

Much media attention has recently focused on the extent to which a company, particularly large multinationals or those in financial turmoil, are responsible for the actions of their employees and their subsidiaries. The aim of this paper is to examine recent legal decisions in Australia that relate to conglomerate accountability with the objective of drawing legal policy implications. The paper takes a case-based methodology to examine from an economic legal perspective the effects of conglomerate accountability. The role of subsidiaries as agents or partners is examined in regards to English and Australian law. The Australian view of the ‘corporate veil’ is discussed which leads into a discussion of circumstances where the Australian courts are willing to pierce the corporate veil. Tortious liability is then discussed and as a result a closing analysis is stated in which the potential implications for the EU are highlighted.