Legislator Case Law & Legislation
11 05 129 • KG LU 11 05 129 AI generated

Parent Company v. Subsidiary Board Member: Authority of Group Management over Subsidiary Directors

Case Number 11 05 129
Court / Authority
Jurisdiction Switzerland · Canton of Lucerne (CH-LU)
Decision Date
Outcome Dismissed

Legislator summary

AI generated

A former manager and subsequently elected board member of a subsidiary company was sued for damages by the parent company for entering into a real estate contract without approval from the group management, which claimed a hierarchical structure granted it the authority to issue binding directives to subsidiary board members. The court ruled that a subsidiary's board member primarily owes a duty to protect the interests of the subsidiary, and absent a specific contractual obligation, they are not legally bound by instructions from the group management, nor could the board chairman issue binding instructions to a fellow board member, meaning the basis for the damages claim failed.

Legislator headnote

Official

Art. 321a, 663e und 717 OR. Weisungsrecht der Konzernleitung und des Verwaltungsratspräsidenten gegenüber einem Verwaltungsrat. | OR (Obligationenrecht)

Keywords

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subsidiary company company structure management contract liability of managing director real estate company contractual duty

Cited Legislation

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Cited Case Law

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Full text

Rechtsprechung Luzern

Instanz: · Obergericht

Abteilung: · I. Kammer

Rechtsgebiet: · OR (Obligationenrecht)

Entscheiddatum: · 30.03.2007

Fallnummer: · 11 05 129

LGVE: · 2007 I Nr. 21

Leitsatz: · Art. 321a, 663e und 717 OR. Weisungsrecht der Konzernleitung und des Verwaltungsratspräsidenten gegenüber einem Verwaltungsrat.

Rechtskraft: · Diese Entscheidung ist rechtskräftig.