Legal basis: Interim Measures for State-owned Capital and Financial Management of Enterprises
Article 4 An enterprise shall, in accordance with the requirements of establishing a modern enterprise system, clarify property rights and straighten out and standardize the relationship between funds and financial management.
If an enterprise has subsidiaries, it is necessary to establish a fund and financial management system for the parent and subsidiary companies, and the parent company is responsible for the subsidiaries to the extent of its capital contribution.
Article 5 The term "state-owned capital" as mentioned in these Measures refers to the state's investment in enterprises in various forms and the rights and interests formed by investment, as well as other rights and interests recognized as owned by the state according to law.
The term "competent financial authorities" as mentioned in these Measures refers to the financial departments of the people's governments at all levels responsible for the state-owned capital and financial management of enterprises. Among them: the competent financial organ of the central management enterprise refers to the Ministry of Finance; The competent financial organ of a local management enterprise refers to the local financial department at the same level.
The term "parent company" as mentioned in these Measures refers to various group companies, head offices and institutions authorized by the state to directly invest in state-owned capital.
The term "subsidiary" as mentioned in these Measures refers to an enterprise directly invested by or managed by the parent company, and controlled by the people's governments at all levels.