In international business, a subsidiary refers to a legal person enterprise of the host country established in accordance with the law with all or part of the shares invested by the parent company.
A holding subsidiary means that more than 50% of its capital contribution or shares are controlled by another company, but it does not reach 100%.
2, the national regulations are different.
The subsidiary is legally independent from the parent company and has an independent and complete company management organization system, so it has greater independence and certain flexibility in operation.
According to the requirements of relevant national laws, regulations and normative documents on the standardized operation and asset control of listed companies, the holding subsidiary, as the controlling shareholder or actual controller, exercises the supervision and management power over the major issues of the holding subsidiary, and enjoys the right of investment income and the decision-making power on major issues of the investment enterprise according to law.
3. Different rights
The business activities of subsidiaries should also be controlled by the parent company and obey the needs of the overall strategy and interests of the parent company. However, this control is indirect and positively related to the proportion of equity owned by the parent company.
Holding subsidiaries have the obligation to guide, supervise and provide related services to holding subsidiaries.
Baidu encyclopedia holding subsidiary
Baidu encyclopedia-subsidiary