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The holding company of a copper mining business is incorporated in England and Wales. It is a public limited company and has made record profits.

The holding company of a copper mining business is incorporated in England and Wales. It is a public limited company and has made record profits. It conducts the copper mining through its wholly owned subsidiary company which is incorporated in Chile, South America where the mining takes place. This has caused pollution to local water sources which in turn has caused injury to a group of 1,000 local residents who may pursue a claim against the subsidiary and the holding company in negligence and nuisance. The subsidiary company relies upon the holding company for financial support and is effectively managed and run entirely by the holding company. The holding company seeks your advice as to whether it could be held liable to the local residents by a court in England and Wales. What is the best advice for the holding company?

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