Generally speaking, a group company refers to a large company with many production and operation institutions. It generally manages large-scale assets, governs many production and business units, and has its own rights and interests in many other enterprises.
Extended data:
The basic characteristics of the group company:
(1) The essential feature of a group company is a vertical organizational system based on the parent-subsidiary relationship. The group company itself has independent legal personality, which is a limited company or a joint stock limited company in the form of legal person property right system. The group company is the core enterprise of the enterprise group, usually the parent company, with independent and limited capacity for civil liability.
(2) The group company consists of a parent company and several subsidiaries. Legally speaking, the parent company is the group company itself, which includes several subsidiaries and affiliated enterprises.
Among them, the subsidiary refers to the subordinate enterprises in which the parent company holds an absolute controlling position (generally holding more than 50%); Associated enterprises refer to joint-stock enterprises whose parent companies only have general shareholding relations, and enterprises with various fixed cooperative relations. In short, there can only be one parent company, and there can be multiple subsidiaries or affiliated enterprises.
(3) From the perspective of internal organizational relations, the parent company takes equity property rights as a link to vertically control subordinate enterprises. Including: wholly-owned subsidiaries with all property rights (parent company holding 100%, also known as branches);
Holding subsidiaries holding more than half of the shares (the parent company holds 51-99%); Affiliates holding a certain proportion of shares (25-50% of the shares are called high-quality holding subsidiaries, and less than 25% of the shares are called arbitrary holding subsidiaries. This may not be called the parent company). Usually, subsidiaries cannot hold the shares of the parent company in turn.
(4) The property right relationship of the group company is clear. Generally speaking, group companies are formed by the original sponsors through continuous development, expansion and fission. They set up branches internally through investment and continue to acquire and control other competitors or related enterprises externally through the capital security market. Therefore, the blood relationship between the parent company and its subsidiaries is stable and closely combined.
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