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Corporate Shield

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Chapter Summary

This chapter examines the availability of the defense of corporate shield due to specific allocation of substantive liability under Alien Tort Statute (ATS) within corporate groups or networks operating on a worldwide basis. It analyzes the issue of how to hold the parent corporation liable for the acts of its subsidiaries under ATS in the absence of direct participation by the parent corporation. The chapter examines the parallel issue of how to hold a parent corporation liable under ATS for the acts of its business partner-corporations which do not officially form part of the former's corporate group. Compared to the Bowoto case, Sinaltrainal v. Coca-Cola Co. addressed a much more lenient form of business relationship between two or more corporations other than stock ownership.

Keywords: Bowoto case; corporate shield; parent corporation; Sinaltrainal case



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