Relationship between parent company and subsidiary company:
1, control relationship. Although the subsidiary is an independent legal person, it can engage in various business activities within its own business scope, but its autonomy is limited. The parent company plays a leading role in the shareholders' meeting of the subsidiary, and the management policy and investment plan of the subsidiary are actually decided by the parent company;
2. Investment relationship. The parent company owns subsidiaries, except for a few controlled by agreement, which are basically realized through investment.
Legal objectivity:
Company Law of the People's Republic of China
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.
People's Republic of China (PRC) Civil Code
Article 74
A legal person may set up branches according to law. Where laws and administrative regulations stipulate that branches should be registered, such provisions shall prevail.
Branches engage in civil activities in their own names, and the resulting civil liabilities shall be borne by legal persons;
It can also be borne by the property managed by the branch company first. If it is insufficient, it shall be borne by the legal person.