Question
1.Happy plc is a successful building company which has 2 subsidiary companies, Apple Limited and Orange Limited. The directors of Happy plc are all directors
1.Happy plc is a successful building company which has 2 subsidiary companies, Apple Limited and Orange Limited. The directors of Happy plc are all directors of all 2 subsidiaries.
Apple Limited has contracted with a local building contractor to supply water pipes and building supplies. These were never supplied although the building contractor paid 400,000 for the supplies.
Orange Limited has 40 employees of whom 40% are off work ill with stress due to what they consider to be stressful working conditions.
Claims against Apple Limited and Orange Limited were brought successfully by the building contractor and employees respectively.
Before the judgments could be enforced all 2 subsidiaries went into insolvent liquidation and have insufficient funds to meet any liability.
Advise the parties of any potential claims and liabilities that they might have against the subsidiaries or the parent company, Apple plc.
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