Please explain the definitions of subsidiaries and participating holding companies. When is it called a subsidiary and when is it called a shareholding holding company? Is there any overlap between them?
A subsidiary refers to a company whose shares are controlled by another company or actually controlled and dominated by another company according to an agreement. A subsidiary has the status of an independent legal person, owns all its own property, its own company name, articles of association and board of directors, conducts business activities and engages in various civil activities in its own name, and independently bears all consequences and responsibilities brought about by the company's actions. However, major decisions or major personnel arrangements involving the interests of the company still have to be decided by the parent company.
Joint-stock enterprises refer to enterprises in which the parent company shares and wholly-owned subsidiaries share. Equity participation only means investment in the invested enterprise, without highlighting the equity ratio and whether it has control or actual influence.