When the parent company goes bankrupt, the equity of the subsidiary company may be affected to some extent. The specific treatment methods will be different due to factors such as the ownership structure and bankruptcy procedures of the parent company and subsidiaries.
Generally speaking, if the parent company is the controlling shareholder of the subsidiary, the bankruptcy of the parent company may lead to changes in the equity of the subsidiary. In the process of bankruptcy liquidation of the parent company, the equity of the subsidiary company can be frozen or transferred to pay off the debts of the parent company.
If the parent company is a shareholder of the subsidiary, then the bankruptcy of the parent company has relatively little impact on the equity of the subsidiary. However, if the shares of subsidiaries held by the parent company are frozen or transferred, the shareholding structure of subsidiaries may change.
To sum up, when the parent company goes bankrupt, the equity of subsidiaries may be affected to some extent, and the specific treatment methods will be different due to the equity structure and bankruptcy procedures of the parent company and subsidiaries.
Legal basis:
The Company Law of People's Republic of China (PRC) stipulates that shareholders of a company shall abide by laws, administrative regulations and articles of association, exercise their rights according to law, and shall not abuse their rights to harm the interests of the company or other shareholders. At the same time, if the company is liquidated and cancelled according to law, creditors have the right to demand the company to pay off its debts.
The Enterprise Bankruptcy Law of the People's Republic of China stipulates that a debtor may apply to the people's court for bankruptcy when he is unable to pay off due debts. In the process of bankruptcy liquidation, creditors have the right to demand the debtor to pay off debts, including disposing of the equity of subsidiaries.
Therefore, according to the above legal basis, when the parent company goes bankrupt, the equity of the subsidiary company may be affected to a certain extent, and the specific treatment methods will be different due to the equity structure and bankruptcy procedures of the parent company and the subsidiary company.