SINGLE ENTERPRISE LIABILITY THEORY ON COMPANY GROUPS

Company shareholders utilise principles of limited liability and separate legal entity as much as ultimate shareholders do. However, when group of companies are concerned, these principles, which have been developed considering the single company and its ultimate shareholder, lose ground in terms of the benefits that allow them to be accepted, on the other hand disadvantages in their natures rise. Because of rigid practices arising from their structure, the traditional theories which are used for piercing the corporate veil as a solution are attacked due to especially they fails reliefing tort creditors. For this reason, various theories are laid out; one of which is the theory of single enterprise liability. According to the theory, the companies that are oriented towards a common commercial target are accepted as a single enterprise and it is aimed that group of companies are made responsible as a whole, especially the parent compan