The parent company refers to a company that owns a certain number of shares in other companies or can control and dominate other companies' personnel, finance, business and other matters according to the agreement. The most basic feature of the parent company is not whether it holds the shares of the subsidiary, but whether it participates in the operation of the subsidiary. Companies can be divided into parent companies and subsidiaries according to their different positions in the relationship between control and controlled. The company that actually controls other companies is the parent company, and the company that is actually controlled by other companies is the subsidiary company. They all have legal personality. Strictly speaking, the listing of the parent company has nothing to do with the income of the subsidiaries. However, from the perspective of intangible assets, the listing of the parent company can bring intangible assets to the subsidiaries. One aspect of the listing of the parent company is that the development of the actual holding company has reached the listing standard. For the better development of enterprises in the future, listing is the goal of every enterprise, but there are also many excellent enterprises that choose not to go public. Listing or not depends mainly on the strategic needs of enterprises. The listing of parent company can bring intangible assets to subsidiaries, which is beneficial from the perspective of intangible assets. The income of the subsidiary is to be distributed to the parent company, so if the subsidiary loses money year after year and affects the investment income of the parent company, it is likely to be sold.
legal ground
The provisions of article 13 of the company law