Article 249 of Companies Law

The company shall be jointly and severally liable for the debts of its subsidiaries if the following conditions are met: 1 - The subsidiary's assets are insufficient to satisfy its obligations. 2 - The company owns a proportion of the subsidiary's capital enabling it to control the appointment of the majority of the members of the board of directors or managers, or the decisions issued by management. 3 - The subsidiary adopts decisions or undertakes dispositions aimed at serving the interest of the company owning and controlling it and harming the interest of the subsidiary or its creditors, and these are the principal cause of the subsidiary's inability to satisfy its obligations. All of the foregoing shall apply unless the holding company is liable for the subsidiary's debts on another ground. Law Index 1512 Home Page Companies Law Law No. 1 of 2016 Promulgating the Companies Law Part Twelve Conversion, Merger, Division, and Dissolution of Companies Chapter One Conversion of Companies