There is a certain connection and difference between the parent company and the subsidiary company registration.A parent company is a company that has the control over another company. The subsidiary is a company controlled by another company.Both the parent company and the subsidiary company have independent legal person qualifications.Xiaoma legal editor for you to detail the relationship between the parent company and the subsidiary and the difference.
The parent company is a company that has a certain percentage of shares of another company or has the actual control over another company through agreement. It has independent legal personality and can bear civil liability independently.A subsidiary is a legal concept corresponding to the parent company, which means that a certain percentage of the shares are held by another company or controlled by another company actually controlled by another company.Subsidiaries have independent legal personality, can independently bear civil liability.he similarities and differences between the parent company and the subsidiary:
1.The subsidiary is actually controlled by the parent company
The parent company has a substantial decision on the major events of the subsidiary, you can decide the composition of the board of directors, can directly exercise the power to appoint the board of directors.
2.The relationship between the parent company and the subsidiary is generated based on the share control or possession agreement
Generally speaking, shareholders with more shares have greater decision-making power on corporate affairs. So if a company has more than 50% of the shares of another company, it can actually control the company.But in practice the majority of the company's shares are more dispersed, so long as you have a certain percentage of the shares can get control status.In addition to controlling the shares, by signing certain special agreements or contracts, you can also let a company control another company.
3.The parent company and subsidiary company have independent legal person
Although the subsidiary is the actual control of the parent company's position, in many ways will be management and control by the parent company's , and some even substantially similar to the parent company's branches, but at the legal level, the subsidiary is an independent legal person Of the legal person in his own name to engage in business activities, can independently assume civil liability.Subsidiaries have their own articles of association, the board of directors, the board of supervisors and other companies operating decision-making body. Subsidiaries also have their own independent property, the actual use and possession of subsidiaries belongs to subsidiaries, and has its own company's balance sheet. Both subsidiaries and parent companies bear their respective responsibilities as their own property.And the parent company as the subsidiary of the largest shareholder, only its contribution to the subsidiary of the amount of the subsidiary in the business activities of the debt bear the responsibility.
