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TCLA Vacation Scheme Applications Discussion Thread 2025-26

My Company Law coursework was on this! Baso the title was whether a parent company which exercises control over its subsidiary company is liable for any torts its subsidiary commits and/or whether, in accordance with the single economic unit principle, the parent company will also face liability for any incurred debts. Prest v Petrodel was one of the main case judgements I used! Lord Sumption worked his magic on that one. It defo hit the mark in my opinion. :)
Ah, splendid! I’m glad Prest v Petrodel came in handy for your coursework 😎. It was indeed an interesting case - I tried to make clear that a parent company isn’t automatically liable for a subsidiary’s torts or debts, limiting the circumstances to when a company is used to evade an existing legal obligation.

Delighted to hear it hit the mark for you! One always hopes the law can be both precise and, dare I say, a little elegant.
 

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