Legal analysis: Holding subsidiary means that more than 50% of its capital contribution or shares are controlled by another company, but it does not reach 100%. According to the requirements of the relevant national laws, regulations and normative documents for the standardized operation and asset control of listed companies, the company, as the controlling shareholder or actual controller, exercises the power of supervision and management over the major matters of its holding subsidiaries, and enjoys the right of return on investment and the right of major decision-making on investment enterprises according to law. At the same time, it has the obligation to guide, supervise and provide related services to the holding subsidiaries.
Legal basis: People's Republic of China (PRC) Company Law.
Article 1 This Law is formulated for the purpose of regulating the organization and behavior of companies, protecting the legitimate rights and interests of companies, shareholders and creditors, maintaining social and economic order and promoting the development of socialist market economy.
Article 2 The term "company" as mentioned in this Law refers to limited liability companies and joint stock limited companies established in China according to this Law.
Article 3 A company is an enterprise legal person, which has independent legal person property and enjoys legal person property rights. The company is liable for its debts with all its property.