What is the ratio in Chandler v Cape?

A parent company can owe a direct duty of care to employees of its subsidiary if it has superior knowledge and the subsidiary's employees would reasonably rely on the parent using that knowledge for their protection.

What did the court decide in Chandler v Cape?

The Court of Appeal held that the parent company owed a direct duty of care to the subsidiary's employee and established a four-part test for such duties.

Why is Chandler v Cape important for company law?

It established how parent companies can be held directly liable for subsidiary employees' welfare without piercing the corporate veil, significantly impacting group liability.

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