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I’m pretty sure it’s not legal to shut down one subsidary and not return the deposits if the rest of the company continues operating.
by the_mitsuhiko 8y ago
I’m pretty sure it’s not legal to shut down one subsidary and not return the deposits if the rest of the company continues operating.
- tuukkah 8y agoIn general, aren't the stock owners (the parent companies) non-liable for the operations of the limited-liability corporation (the subsidiary)?
- the_mitsuhiko 8y agoMost countries have a form of "Piercing the corporate veil" so that companies cannot just make subsidaries default nilly willy without any repercussions. And that even assumes that obike Singapore declared bankruptcy. In central Europe for sure you cannot even use deposits to satisfy creditors unless the deposit was made after the moment of insolvency. I have never heard deposits not being paid back if a company ceases operation by leaving a market.
- TomMarius 8y agoDepends on what company did receive the money and is a party in your contract. It might not be the subsidiary.