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Concern is often expressed about the ability of companies to incorporate subsidiaries with limited share capital and minimal assets, use those subsidiaries to deliberately engage

Concern is often expressed about the ability of companies to incorporate subsidiaries with limited share capital and minimal assets, use those subsidiaries to deliberately engage in high-risk commercial activities and then rely on the principle of corporate personality to avoid liability for the debts of those subsidiaries.

Briefly mention and explain any provisions in the Companies Act 71 of 2008 which could be used to hold a holding company liable for debts incurred by its subsidiary company.

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