Corporate liability highlights the civil law principles of vicarious liability as they apply to the corporate entity-a major economic player in our societies. Traditionally, it requires proof of a harmful act, damage, and a causal link. Its practical significance lies in the analysis of parent companies' liability for the acts of their subsidiaries; however, the failure to recognise the 'group of companies' as a legal concept in its own right significantly disrupts the scope of application of the traditional rules of civil liability developed for natural persons.
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