Does the chairman of a non-holding subsidiary need to know about the divorce of the parent company?

The chairman of a non-holding subsidiary should know that the parent company is divorced from the relationship, so as to have a more thorough understanding of the overall grasp of the company.

A subsidiary may have a chairman, but if the parent company has only one shareholder, it is a one-person limited liability company and there is no need to set up a shareholders' meeting. According to relevant laws and regulations, subsidiaries have independent legal personality, and all debts are borne by the company's property.

Whether a subsidiary establishes the position of chairman can be decided according to the company's situation. A wholly-owned subsidiary of the parent company is a one-man company as mentioned in the company law. A one-person company may not have a shareholders' meeting or a board of directors. The decision is made by a shareholder. If the shareholders of the subsidiary are the parent company, the parent company will make the decision. According to Article 50 of the Company Law, a limited liability company with a small number of shareholders or a small scale may have an executive director instead of a board of directors. The executive director may concurrently serve as the company manager. The functions and powers of the executive director shall be stipulated in the articles of association.