is a parent company liable for its subsidiary
1 A parent may be liable for its subsidiaryâs activities if the two entities are part of a single business enterprise. 2  An example of common facts to this type of case: the subsidiary and parent have undocumented transfers of funds and the subsidiary does business under the name of the parent entity.o pierce the corporate veil and find a parent corporation liable for a subsidiaryâs debts, the plaintiff suing the parent entity must show that there is an overt intention by the corporation to disregard the corporate entity in order to avoid a duty owed to that plaintiff.