How to distribute the equity of subsidiaries?

Legal analysis: the distribution of the equity of a subsidiary is determined by the capital contribution of its parent company (i.e. shareholders), and the capital contribution of each shareholder is determined by all shareholders through consultation and agreed in the articles of association of the subsidiary. According to the capital contribution, subsidiaries can be divided into wholly-owned subsidiaries, holding subsidiaries and non-holding subsidiaries.

Legal basis: People's Republic of China (PRC) Company Law.

Article 5 A company engaged in business activities must abide by laws, administrative regulations, social ethics and business ethics, be honest and trustworthy, accept the supervision of the government and the public, and assume social responsibilities.

The legitimate rights and interests of the company are protected by law and shall not be infringed.

Article 6 To establish a company, it shall apply to the company registration authority for registration of establishment according to law. Those that meet the conditions for establishment as stipulated in this Law shall be registered as limited liability companies or joint stock limited companies respectively by the company registration authority; Those who do not meet the conditions for establishment as stipulated in this Law shall not be registered as a limited liability company or a joint stock limited company.