Liability of Parent Companies for Subsidiary Obligations in Azerbaijan
Legal Frameworks and Possible Improvements
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Under Azerbaijani law, the responsibility of parent firms for the obligations of their subsidiaries remains complex and largely unregulated. Azerbaijan lacks clear legislative tools to address abuses within corporate group structures, despite growing global attention to corporate responsibility through measures such as the EU's Corporate Sustainability Due Diligence Directive. Drawing on legal models from France and Germany, this analysis identifies key gaps in Azerbaijani law and proposes targeted reforms to bring it into line with global standards on governance, sustainability and group acco...
Under Azerbaijani law, the responsibility of parent firms for the obligations of their subsidiaries remains complex and largely unregulated. Azerbaijan lacks clear legislative tools to address abuses within corporate group structures, despite growing global attention to corporate responsibility through measures such as the EU's Corporate Sustainability Due Diligence Directive. Drawing on legal models from France and Germany, this analysis identifies key gaps in Azerbaijani law and proposes targeted reforms to bring it into line with global standards on governance, sustainability and group accountability, particularly with regard to human rights and environmental due diligence.
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