A holding subsidiary means that more than 50% of its capital contribution or equity is controlled by another company, but it does not reach 100%. Subsidiary is a legal concept corresponding to parent company. A parent company refers to a company that owns a certain percentage of the equity of another company or can actually control another company through an agreement. A subsidiary refers to a company whose shares are owned by another company or actually controlled by another company through an agreement. A subsidiary company has the status of a legal person and can bear civil liability independently. The subsidiary is actually controlled by the parent company. The so-called actual control means that the parent company has the actual decision-making power over all major matters of its subsidiaries, such as personnel rights and asset disposal rights.
legal ground
Item (2) of Article 216th of the Company Law refers to the shareholders whose capital contribution accounts for more than 50% of the total capital of a limited liability company or whose shares account for more than 50% of the total capital of a joint stock limited company; Although the capital contribution or the proportion of shares held is less than 50%, but according to their capital contribution or shares held, shareholders have enough voting rights to the shareholders' meeting and the resolutions of the shareholders' meeting.