CEU Electronic Theses and Dissertations, 2020
| Author | Aidossova, Aisha |
|---|---|
| Title | Piercing the Corporate Veil: Holding Parent Companies Accountable For the Human Rights Violations of Their Subsidiaries |
| Summary | Over the years, the number of transnational corporations (TNC) has significantly increased all over the world. The role of the TNCs in developing countries is important because it is the source of foreign investment. Unfortunately, TNCs’ operation in developing countries may sometimes lead to severe human rights violations. As these countries’ legal and regulatory frameworks are mostly undeveloped. There is no proper protection against such abuses and victims are not always able to access proper remedies. A major reason for this inability to access remedies is the corporate shield between parent and subsidiary corporation. This thesis argues that currently used corporate veil piercing doctrine is not efficient to make parent company indirectly liable for human rights abuses. It therefore suggests that the corporate veil piercing test ought to be relaxed in human rights violations. The first part of the thesis is devoted to the comparative analysis of corporate veil piercing in the United States of America, the United Kingdom and the Federal Republic of Germany. A comparative analysis gives different ways of conceiving the corporate veil piercing test in these three jurisdictions. The second part examines the suitability of the given standards in the human rights violation cases and the necessity of balancing between shareholders’ limited liabilities and remedies for human rights victims. This thesis recommends establishing looser standards for piercing the veil in the gross human rights abuses by creating a clear two-prong test. Also, it proposes to create a new concept of human rights violation liabilities based on the tort claims. |
| Supervisor | Lawrence, Jessica Charles; Soave, Tommaso |
| Department | Legal Studies LLM |
| Full text | https://www.etd.ceu.edu/2020/aidossova_aisha.pdf |
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