The branch loan company is responsible. A branch company does not have legal person status, and its civil liability shall be borne by the head office, but it may also be borne by the property managed by the branch company first. If it is not enough, it will be borne by the head office. Branches engage in civil activities in their own names, and the civil liabilities arising therefrom shall be borne by legal persons. It can also be borne by the property managed by the branch company first. If it is insufficient, it shall be borne by the legal person.
Second, analyze the details
The creditor's rights and debts of the branch company are also closely related to the head office. If the branch is profitable, the head office can share part of the profits, but if the branch is not well managed, the head office should also bear certain debts accordingly. Although there are branches, they are always a whole, and everything is dominated and provided by the trunk.
3. What if the branch cancels the profit?
When distributing profits after cancellation, you can withdraw the statutory surplus reserve public welfare fund to make up for the losses of previous years without making special accounting entries. Surplus reserve can only be used for the collective welfare of employees, and any surplus reserve can be withdrawn, dividends of preferred stock, dividends of common stock and finally undistributed profits at the end of the year. Undistributed profit is the undistributed profit of an enterprise. Distribution can be continued in future years, and it is an integral part of owners' equity before distribution.