| Commentary

25 Status of company groups

| Commentary

25 Status of company groups

Company groups occupy a rather ambiguous position in both company and tax law. Technically, each company in the group is treated as a separate legal entity. For instance, the directors of the holding company owe their fiduciary duties to that company and not to the subsidiaries in the group. Equally, the directors of a subsidiary company owe their fiduciary duties to that company alone and it will be no answer to an allegation of breach of that duty1 to say that the directors were acting in the best interests of the holding company

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