Companies’ duty of care

It is in accordance with a law from the 27th March 2017 which relates to parent companies’ and main contractor companies’ duty of care that a new stage has emerged, following the law of the 9^th December 2016.

A solution of the European parliament from the 10^th March 2021 expresses a willingness to establish a duty of care within the European Union.

Article L 225-102-4 of the Commercial Code makes sure that companies surpassing a certain limit are obliged to establish a duty of care plan aimed at identifying the risks and preventing potential serious violations of fundamental human rights and freedom, human health and security, as well as the environment, which may arise from the actions of the parent company, subsidiaries and even suppliers.

The penalty: Failure to comply with the article referred to above results in the liability of the company, and they will be required to repair the damage caused. Article L 225-102-4 of the Commercial Code ensure that when a company is called upon to comply with its obligations and “does not meet them within the 3 months of formal notice, at the request of any person showing an interest in taking action, the court can order them to comply, under a penalty if necessary.”

Thus, the commercial court will therefore be able to rule on an injunction in the event of a breach of the duty of vigilance.

If such a procedure could be a concern for you and your company, please do not hesitate to contact us at maupaurd.com or [email protected] and read about the wide range of services that we have to offer.