Parent - Subsidiary Liability

[jack52]

I was investigating today some corporate structure setups:

Suppose HoldingCompany (UK Limited Company) owns SubsidiaryCompany (UK Limited Company).

Apparently that even though they are separate limited companies is it likely that the HoldCo can be held liable for the debts of the SubCo (assuming the HoldCo fully controls the SubCo) i.e. you cannot assume liability will be limited to the SubCo.

Which is interesting, just wondering if anyone had any thoughts on this?

 

[WaveJumper]

I suppose my question would be what are you trying to achieve

 

[jack52]

I suppose my question would be what are you trying to achieve

i would like HoldCo not to be liable for the debts of SubCo

start a new business using the funds of HoldCo without exposing HoldCo to a liability greater than the equity invested in SubCo