Can the parent company provide guarantees for its subsidiaries?

Hello, although there is an investment relationship between the parent company and its subsidiaries, they are both independent legal persons, and there is no problem for the parent company to provide guarantees for its subsidiaries! However, according to the relevant laws and regulations of our country, the parent company can guarantee its subsidiaries, which needs to comply with the provisions of the company's articles of association and be decided by the board of directors or the shareholders' meeting.

Legal basis:

Article 16 of the Company Law: The company's investment in other enterprises or providing guarantee for others shall be decided by the board of directors or the shareholders' meeting in accordance with the articles of association; Where the articles of association stipulate limits on the total amount of investment or guarantee and the amount of individual investment or guarantee, it shall not exceed the prescribed limits.

Where a company provides a guarantee for the company's shareholders or actual controllers, it must be resolved by the shareholders' meeting or the shareholders' meeting.

Shareholders specified in the preceding paragraph or shareholders controlled by actual controllers specified in the preceding paragraph shall not participate in voting on matters specified in the preceding paragraph. The voting shall be passed by more than half of the voting rights held by other shareholders present at the meeting.