Comparative legal analysis demonstrates systems-based fault models in Australian and English corporate liability, indicating a framework for addressing diffuse organizational harm.
English corporate law lacks a stable framework for responsibility arising from diffuse organisational fault. Traditional attribution doctrine focuses upon whose individual acts or knowledge should count as the corporation’s, yet modern corporate harm frequently emerges through governance systems, procedural design, and fragmented organisational structures that resist individualistic attribution. In the Australian High Court’s decision in Productivity Partners Pty Ltd v Australian Competition and Consumer Commission [2024] HCA 27, Gordon J expressly adopted a systems-based approach to corporate responsibility. Steward J and Beech-Jones J supported the relevant reasoning, while Edelman J developed a related approach in separate reasons, recognising that corporations may manifest intention through their procedural systems and that corporate knowledge may be ‘implicit in a system’ without individual attribution. This article argues that English courts have already begun moving implicitly toward systems-oriented reasoning in parent company duty cases such as Chandler, Vedanta, and Okpabi. Productivity Partners provides the conceptual vocabulary for understanding this emerging doctrinal development while remaining compatible with separate legal personality and ordinary negligence principles.
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Ben Chester Cheong (2026) studied this question.
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