Legal analysis: Legally, subsidiaries have the status of independent legal persons. Have its own company name and articles of association, and conduct business activities in its own name. Its property and that of the parent company are independent of each other. In terms of legal responsibilities, subsidiaries and parent companies also bear their own legal responsibilities within the limits of all their property, which are not related to each other. The bankruptcy of the parent company may lead to the possible results of the subsidiary: First, the bankruptcy of the parent company may lead to the dissolution and liquidation of the subsidiary. Because the parent company holds most or even all of the shares of the subsidiary, the parent company can dissolve the subsidiary in accordance with legal procedures by convening the shareholders' meeting or shareholders' meeting of the subsidiary, and clean up, dispose of and distribute the property of the subsidiary, thus ending its creditor-debtor relationship, eliminating the legal person status of the subsidiary and recovering the remaining property of the subsidiary for bankruptcy liquidation. Second, the bankruptcy of the parent company does not necessarily lead to the elimination of the subsidiary. The parent company can transfer the shares of its subsidiaries on the basis of evaluation, and the proceeds from the transfer will be included in the bankruptcy property, but the legal person status of the subsidiaries will remain unchanged and the shareholding structure of the subsidiaries will change.
Legal basis: Branch companies can be established in Article 14 of People's Republic of China (PRC) Company Law. 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.