Legal analysis: Whether a subsidiary establishes the position of chairman depends on the company. A wholly-owned subsidiary of the parent company is a one-man company as mentioned in the company law. A one-person company may not have a shareholders' meeting or a board of directors. The decision is made by a shareholder. If the shareholders of the subsidiary are the parent company, the parent company will make the decision.
Legal basis: Article 50 of the Company Law of People's Republic of China (PRC). A limited liability company with a small number of shareholders or a small scale may not have an executive director or a board of directors. The executive director may concurrently serve as the company manager. The functions and powers of the executive director shall be stipulated in the articles of association.