Will the board of directors review the establishment of subsidiaries of the company?

Whether the establishment of a subsidiary requires the board of directors to follow the provisions of the articles of association. If there are no provisions, the shareholders' meeting may vote. There is no mandatory provision by law. A company may set up subsidiaries, which have legal personality.

legal ground

Article 115th of the Company Law

The company shall not provide loans to directors, supervisors and senior managers directly or through subsidiaries.

Article 14

Companies can set up branches. The establishment of a branch company shall apply to the company registration authority for registration and obtain a business license. A branch company does not have legal person status, and its civil liability shall be borne by the company.

A company may set up subsidiaries, which have legal personality and independently bear civil liabilities according to law.