Rank: Forum user
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A question on directors / Management Board.
I have an English MD who runs Company X which is based in the UK. This Company is part of a larger German Company and a German Director sits on a Board with the MD as part of a Board level set up.
If the MD failed in his HS responsibilities or withheld information regarding HS from the German Director, could the German Director still be held responsible as part of the Corporate Body?
Thanks
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Rank: Super forum user
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KAJ
Presumably you mean 'responsible' in the UK? Complex scenario but in principle each subsidiary is normally its own legal entity and can only be prosecuted as such. Therefore a parent company based in another company does not fall within UK legislation, but rather the jurisdiction of that country. The same principle applies to individuals. That is how I understand the law is applied, someone may wish to add more or disagree.
Ray
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Rank: Forum user
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I think the question should not be who is responsible. The question should relate to who is accountable. The English MD is resposnible for his own actions. But the German MD is accountable and carries the can so to speak.
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Rank: Forum user
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The MD reoprts into and sits on the Board.
As an example, if the HSE investigated and prosecuted the english company but the MD chose to try and keep it below the Board radar, could the other board members/corporate body be brought to task.
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Rank: Forum user
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No I doubt it. But i do recall a linked responsibility in an asbestos rulings case which links parent companies to subsiaduaries. When the small companies went out of business and the larger one carried on. They (larger companies) were held to be responsible and liable for suing but i don't think prosecution. The best advice would be from a legal practitioner on this issue. I'm sure there is somebody who can answer this without my attempt at legal waffle.
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Rank: Forum user
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It would come down to the question could the MD be termed the Controlling Mind of the company and that is not a straight forward question to answer.
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Rank: Super forum user
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I tend to agree with Ray (there’s a first time for everything!). Many ‘high street’ companies in the UK are part of larger ‘groups’ often with the ‘parent’ being based in another country. My understanding is that these are all generally ‘discrete’ legal entities in their own right and would normally be dealt with on that basis. I would doubt (but happy to be corrected) that a foreign parent would be prosecuted in the UK, if for no other reason than it would seem to me to be more sensible, appropriate, easy to deal with the prosecution of the UK based company (only).
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