University of Tehran Law Quarterly 2588-5618 47 2 2017 06 22 THE EFFECT OF BANKRUPTCY OF PARENT AND SUBSIDIARY CORPORATIONS ON EACH OTHER WITH SCRUTINY IN THEIR MUTUAL RELATIONS AND RESPONSIBILITY THE EFFECT OF BANKRUPTCY OF PARENT AND SUBSIDIARY CORPORATIONS ON EACH OTHER WITH SCRUTINY IN THEIR MUTUAL RELATIONS AND RESPONSIBILITY 231 249 62612 10.22059/jlq.2017.62612 FA Laya Joneydi Associate Professor of Department of Private and Islamic Law of Faculty of Law & Political Sciences of University of Tehran Hassan Eskandari Master in Private Law in Faculty of Law of University of Tarbiat modares Behzad Farjam Master in Private Law in Faculty of Law & Political Sciences of University of Tehran Journal Article 2015 08 24 The topic of parent and subsidiary corporations, because of the role that these corporations perform in trade-economic field, had always been from the controversial issues of legal circles. From the ambiguities be studied in this case, is the issue of the effect or effectiveness of the bankruptcy of these the two corporations on each other. In this regard, the principle of the financial independence of these two corporations, due to their independent legal entity on the one hand and financial and administrative relations between them on the other hand, should be considered. In this article, it is tried to, by investigation of the financial relations and responsibilities between these two corporations during their lifetime, achieve to offer a clear answer in this issue. The result of article indicate the effect of the bankruptcy of parent corporation to subsidiary and itʼs entering to the valley of dissolution in practice and probable liability of parent corporation in the case of bankruptcy of subsidiary corporation. The topic of parent and subsidiary corporations, because of the role that these corporations perform in trade-economic field, had always been from the controversial issues of legal circles. From the ambiguities be studied in this case, is the issue of the effect or effectiveness of the bankruptcy of these the two corporations on each other. In this regard, the principle of the financial independence of these two corporations, due to their independent legal entity on the one hand and financial and administrative relations between them on the other hand, should be considered. In this article, it is tried to, by investigation of the financial relations and responsibilities between these two corporations during their lifetime, achieve to offer a clear answer in this issue. The result of article indicate the effect of the bankruptcy of parent corporation to subsidiary and itʼs entering to the valley of dissolution in practice and probable liability of parent corporation in the case of bankruptcy of subsidiary corporation. https://jlq.ut.ac.ir/article_62612_cdced54ab0542f9c4dfbcfe9358e5677.pdf