Is the parent company jointly and severally liable for the debts owed by its subsidiaries?

Under normal circumstances, there is no joint liability for debts owed by subsidiaries that are not subscribed by the parent company. A subsidiary is an independent legal person with independent property and the ability to bear civil liability. The parent company is only responsible for the debts owed by its subsidiaries in business activities to the extent of its capital contribution. However, if the parent company's decision leads to the subsidiary's debt, the parent company may not be able to stay out of it.

In addition, in some special circumstances, such as the subsidiary is unable to repay the debt, the creditor can not ask the parent company to pay back the money. However, it should be noted that if the parent company fails to pay its capital contribution to the subsidiary company or fails to pay its capital contribution in full, the applicant executor may apply for changing or adding the parent company as the executor, and bear the responsibility according to law within the scope of unpaid capital contribution.

Therefore, in practice, the parent company should ensure that it has paid its capital contribution to its subsidiaries in full to avoid unnecessary legal risks.