The parent company is a headquarters, headquartered in the home country, engaged in international business and effectively controlled overseas economic entities through foreign direct investment. Most of the parent companies of multinational corporations are established by the capital of one country, but in a few cases, they may be jointly established by the capital of two or more countries.
As the decision-making center of the whole multinational company, the parent company is a legal person organization registered in the government agency of the home country, and is responsible for organizing and managing all the production and business activities of the multinational company at home and abroad.
Companies can be divided into parent companies and subsidiaries according to their different positions in the relationship between control and controlled. The company that actually controls other companies is the parent company, and the company that is actually controlled by other companies is the subsidiary company. They all have legal personality.
The parent company refers to the head office that is headquartered in the home country and effectively controls overseas economic entities through foreign direct investment in international business.
Controlling shareholders refer to shareholders whose capital contribution accounts for more than 50% of the total capital of a limited liability company or whose shares account for more than 50% of the total share capital of a joint stock limited company.
The parent company must have one or more subsidiaries, that is, it must meet the control requirements stipulated in the consolidated statement standards, be able to decide the financial and operating policies of another enterprise, and benefit from the business activities of another enterprise accordingly.
The conditions of controlling shareholders are: when acting alone or in concert with others, they can elect more than half of the directors; Being able to exercise or control the exercise of more than 30% of the voting rights of the Company; , holding more than 30% of the company's shares.
A parent company refers to a company that owns more than a certain percentage of shares in another company or can actually control another company through an agreement. Having the qualification of a legal person and being able to bear civil liability independently.
The controlling shareholder refers to a legal person whose voting rights are sufficient to have a significant impact on the resolutions of the shareholders' meeting and the shareholders' meeting according to the amount of capital contribution or the shares held.
Extended data:
A parent company is an enterprise with one or more subsidiaries. From the definition of parent company, we can see that the parent company requires two conditions at the same time:
1. It must have one or more subsidiaries, that is, it must meet the control requirements stipulated in the consolidated statement standards, be able to decide the financial and business policies of another enterprise, and gain benefits from the business activities of another enterprise. The parent company can only control one subsidiary, and can also control multiple subsidiaries at the same time.
2. The parent company can be an enterprise, such as a joint stock limited company or a limited liability company as stipulated in the Company Law, or it can be the main body, such as other organizations that do not belong to the enterprise form but form accounting entities, such as funds.
References:
Baidu encyclopedia-parent company