Can the parent company reduce its capital if it fails to pay the subsidiary capital in full?

Of course. If the parent company fails to pay the capital of its subsidiaries, the parent company can reduce its capital. Capital reduction is the behavior of a joint-stock company to reduce its registered capital. Its main purpose is to pay off debts at one time, adjust excessive capital, distribute dividends, merge companies and separate departments. The parent company refers to a company that owns most of the shares of other companies at home and abroad. Companies controlled by them are called subsidiaries.