Subsidiaries shall independently bear civil liability according to law. Subsidiaries are economically dominated and controlled by the parent company, but legally, subsidiaries are independent legal persons.
The independence of subsidiaries is mainly manifested in: having an independent name and articles of association; Having an independent organization; Have independent property, be responsible for its own profits and losses, and conduct independent accounting; Carry out various non-governmental economic activities in its own name; Independently bear all the consequences and responsibilities brought by the company's actions.
Extended data:
Special Provisions of People's Republic of China (PRC) Company Law on One-person Limited Liability Company
Article 57 The provisions of this section shall apply to the establishment and organization of a one-person limited liability company. Where there are no provisions in this section, the provisions in the first and second sections of this chapter shall apply.
A one-person limited liability company as mentioned in this Law refers to a limited liability company with only one natural person shareholder or one corporate shareholders.
Article 58 A natural person can only invest in the establishment of a one-person limited liability company. A one-person limited liability company cannot invest in the establishment of a new one-person limited liability company.
Article 59 A one-person limited liability company shall indicate the sole proprietorship of a natural person or legal person in the company registration and indicate it in the company business license.
Article 60 The articles of association of a one-person limited liability company shall be formulated by the shareholders.
Article 61 A one-person limited liability company shall not set up a shareholders' meeting. When making the decisions listed in the first paragraph of Article 37 of this Law, the shareholders shall make them in written form, signed by the shareholders and kept in the company.
Article 62 A one-person limited liability company shall make financial and accounting reports at the end of each fiscal year and audit them by an accounting firm.
Article 63 If the shareholders of a one-person limited liability company cannot prove that the company's property is independent of the shareholders' own property, they shall be jointly and severally liable for the company's debts.
Baidu encyclopedia-subsidiary
Baidu Encyclopedia-People's Republic of China (PRC) and China Company Law