The establishment of subsidiaries will play an important role in expanding business scale, strengthening economic strength, asset reorganization and merger, optimizing asset structure and effectively utilizing existing assets in the current enterprise restructuring.
Extended data:
The relationship between parent company and subsidiary company is based on the agreement of share possession or control. Generally speaking, shareholders with more shares have greater decision-making power over company affairs. Therefore, if a company owns more than 50% of the shares of another company, it can actually control the company.
In practice, the shares of most companies are scattered, and as long as they have more than a certain proportion of shares, they can obtain a controlling position. In addition to controlling shares, a company can also control another company by concluding some special contracts or agreements.