Practice question
Employees seek to collect their employer subsidiary’s unpaid wages from the parent solely because it owns 90% of the shares. No wrongful use or causal injury from that control is shown. Which is correct?
- The shareholding automatically transfers every debt
- The parent necessarily becomes the direct employer
- Every shareholder is automatically solidarily liable
- Ownership alone does not establish the requested veil-piercing
- The employees lose all claims against their actual employer
Legal references
- Maricalum Mining, G.R. 221813 and 222723, July 23, 2018: https://lawphil.net/judjuris/juri2018/jul2018/gr_221813_2018.html
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