There is no need to set up a board of directors. The subsidiary is legally independent from the parent company and has an independent and complete company management organization system, so it has greater independence and certain flexibility in operation. It's actually a one-man company. A one-person company may not have a shareholders' meeting or a board of directors, which shall be decided by one shareholder. If the shareholders of the subsidiary are the parent company, it is decided by the parent company.
Legal objectivity:
Article 14 of the Company Law of People's Republic of China (PRC) * * A company may 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.