The European Court of Human Rights ('ECHR') has been asked to rule on whether it is legal to hold a parent company liable for behaviour of a wholly owned subsidiary. Following the Azko decision (C-97/08 P Akzo Nobel and Others v Commission), fines and liability can be attributed to a parent company for the behaviour of its subsidiary merely due to the fact of ownership.
This principle has previously been opined upon by the EU's Court of Justice. However, companies as well as members of the bar continue to maintain that the principle breaches the fundamental rule on presumption of innocence.
The complaint has been made to the ECHR by an unnamed Dutch company thought to be implicated in a construction cartel. However, proceedings at the ECHR tend to be lengthy, and it is suspected that the court may take up to a year to decide upon whether to take up the action.
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