Legal Question in Business Law in Georgia

If a parent company owns 3 separate subsidiary companies, and one of those subsidiaries gets sued, will the parent company and/or the 2 other subsidiaries be liable for damages as well?


Asked on 10/09/11, 10:58 pm

3 Answers from Attorneys
Paula McGill Attorney at Law

Normally, no.

However, there are exceptions to the rule. Two exceptions occur if you can pierce the corporate veil, of if you can connect actions of the parents or subs to your lawsuit.

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Answered on 10/10/11, 12:13 am
Glenn M. Lyon, Esq. MacGREGOR LYON, LLC, Business Attorneys

Generally, no. Assuming the companies were set up properly and maintained as separate, autonomous entities, there should be no liability without additional facts.

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Answered on 10/10/11, 4:32 am
Glen Ashman Ashman Law Office also dba Glen Ashman Attorney

Usually not, but the fact you asked and left out details leads one to suspect that you may fall into one of the exceptions.

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Answered on 10/10/11, 5:12 am


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