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Legal empowerment for local resource control

Legal empowerment for local resource control

Legal empowerment for local resource control

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to hold the parent company responsible <strong>for</strong> the acts of its subsidiary, the<br />

plaintiffs would have to prove that the parent company played an active role<br />

in the day-to-day management of the subsidiary (see e.g., <strong>for</strong> the UK, Lubbe v.<br />

Cape). This may not be easy.<br />

From an extra-legal perspective, even assuming that legal aid available in the<br />

home country is able to cover legal costs, very substantial transaction costs<br />

(e.g. relating to contacting lawyers in the home country) and legal awareness<br />

problems severely constrain the feasibility of this legal avenue in most cases.<br />

105

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