According to the provisions of Article 14 of the Company Law, subsidiaries have the status of legal persons and independently bear civil liabilities according to law. Therefore, the property of the subsidiary is not owned by the parent company, and the equity of the subsidiary is owned by the parent company. Therefore, according to the Provisions of the Supreme People's Court on Several Issues Concerning the Enforcement of People's Courts (for Trial Implementation), the parties concerned may apply for enforcement of the investment rights and interests of the parent company in the subsidiary company.
In this case, Company B is a subsidiary of Company A, and both companies have independent legal personality, so they should bear civil liability independently with their company property. Company C may not apply for direct execution of the property of its wholly-owned subsidiary, but may apply to the court to freeze the investment rights and interests owned by Company A in Company B, and pay off the debts arising from the transfer of its investment rights and interests during the execution.
Provisions of the Supreme People's Court Municipality on Several Issues Concerning the Enforcement of the People's Courts (for Trial Implementation).
54. After the investment rights and interests owned by the person subjected to execution in his sole proprietorship enterprise are frozen, the people's court may directly order the transfer to pay off the debts owed to the applicant with the proceeds from the transfer.
With the consent of more than half of all shareholders, the people's court may auction, sell off or transfer the capital contribution or equity of the person subjected to execution in a limited liability company in accordance with the provisions of Articles 35 and 36 of the Company Law of People's Republic of China (PRC). Shareholders who do not agree to the transfer shall purchase the transferred investment right or equity. If you don't buy it, it will be deemed that you agree to the transfer, and it will not affect the implementation.
The people's court may also allow and supervise the person subjected to execution to transfer his investment right or equity by himself, and pay off the debts to the applicant with the proceeds from the transfer.
People's Republic of China (PRC) Company Law (revised in 2005)
Article 14
Companies can set up branches. The establishment of a branch company shall apply to the company registration authority for registration and obtain a business license. A branch company does not have legal person status, and its civil liability shall be borne by the company.
A company may set up subsidiaries, which have legal personality and independently bear civil liabilities according to law.