As a junior solicitor in corporate firm, provide a briefing document setting your initial advice supported by legal authority for the parent company to the risk of the liability according to the following facts:
1-samPLC is a highly profitable parent company its operate its business through Holly on subsidiaries.
2-One of the subsidiaries companies called chemo LTD both the board of directors and directors for health safety and environment are the same members in both companies.
3-the subsidiary has no substantial assets, its industrial premises are leased from the parent company, all the profits thats the subsidiary makes are distributed as dividends to the parent company in full compliance with the UK company law requirements.
4-there was a spill off chemicals from containers at the premises from which the subsidiary operates.
5-The land of adjacent property owners becomes contaminated, The subsidiary had been negligent in its storage of chemicals.
6-The subsidiary couldnt meet the claim with insufficient assets and subsequently enters to liquidation.
