Who will bear the debts of the branch?

Legal analysis: Both the Civil Procedure Law and the Company Law have relevant provisions on what responsibility the head office bears for the debts of its branches. However, due to inconsistent provisions and unclear judicial interpretations, in trial practice, different judges in grass-roots courts and even the same court have different opinions, and there are three different judgments in trial practice:

1. The Head Office shall be jointly and severally liable for the debts of the branches.

2. The head office shall assume supplementary responsibilities for the debts of the branches.

Three. The head office is independently responsible for the debts of the branches.

In entity, it should be judged that the head office and the branch office are "* * * the same repayment responsibility".

Procedurally, the head office should bear the "supplementary repayment responsibility" for the debts of its branches.

When executing the effective judgment that the head office and the branch company are jointly and severally liable for repayment, the property occupied by the branch company shall be executed first; When the property owned by the branch company is insufficient to pay off the debts, the property of the head office and other branches under the head office should be reconsidered.

Legal basis: Branch companies can be established in Article 14 of People's Republic of China (PRC) Company Law. The establishment of a branch company shall apply to the company registration authority for registration and obtain a business license. A branch company does not have legal person status, and its civil liability shall be borne by the company. A company may set up subsidiaries, which have legal personality and independently bear civil liabilities according to law.