Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Corporate liability definition

What does Corporate liability mean? Corporate liability describes when a company is held legally responsible—civilly or criminally—for conduct connected with its business. It is a descriptive expression, shaped by legislation and case law across the UK and Ireland. Civil liability commonly arises through vicarious liability in tort/delict for employees’ acts within the course of employment. Criminal corporate liability is typically established by: - Identification/attribution (the “directing mind and will” or, for some UK economic crimes, a senior‑manager test) for offences requiring mens rea. - Strict‑liability and regulatory offences (eg health and safety, environmental). - Statutory models such as “failure to prevent” offences (Bribery Act 2010, s.7; Criminal Finances Act...

Corporate tort liability: attribution, directors and vicarious liability; parent–subsidiary duties of care and accessory liability (common design) — key authorities Chandler v Cape, Vedanta, Okpabi, AAA v Unilever

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Practice notes

This Practice Note explores tortious liability in the corporate sphere, covering the general approach to corporate liability in tort, the wrongful acts of company agents, and matters relating to group structures, including when a parent may owe a duty of care for the negligent acts or omissions of its subsidiary company or companies.

It considers key Court of Appeal and Supreme Court rulings—Chandler v Cape, AAA v Unilever, Vedanta v Lungowe and Okpabi v Royal Dutch Shell—and flags particular issues for companies facing accessory liability in tort (common design).

For wider guidance on types of tort claims and on establishing a duty of care in negligence, see Practice Notes:

Vicarious liability and multi-party torts
Procedural abuse torts and similar
The different torts—property, people and animals
Multiple tortfeasors—liability issues
Negligence—when does a duty of care arise?

Corporate liability in tort—general

A company is a legal person and may sue or be sued in tort just as an individual can (Johnson v Gore Wood & Co (No 1), Foss v Harbottle). This, however, excludes certain...

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Web page updated on 21/05/2026

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