Combined financial strength: financial situation of parent company may be taken into account when determining the financial standing of the subsidiary that is being fined

Combined financial strength: financial situation of parent company may be taken into account when determining the financial standing of the subsidiary that is being fined 1000 563 SarisLaw

The Administrative Jurisdiction Division ruled in its judgment that the financial situation of a parent undertaking can be taken into account when determining the financial strength of its fined subsidiary company. However, this requires that the parent undertaking and the subsidiary company are actually to be considered as one entity. If the joint financial capacity is sufficient to pay the fine, there is no room for a reduction of the fine because of the limited financial strength of the fined subsidiary company.

The full blog post is written in Dutch.

Date: 20 September 2016
ECLI: ECLI:NL:RVS:2015:2120
Author: Christien Saris