According to the newly revised Article l4 of the Company Law, a limited liability company may set up a branch, which does not have the legal person status, and its civil liability shall be borne by the company. Article 48 of the Civil Procedure Law and Item (5) of Article 40 of the Supreme People's Court's Opinions on the Civil Procedure Law stipulate that a branch established by a legal person according to law and obtained a business license may be an independent civil litigation subject.
The provisions of the company law solve the ultimate problem of entity's civil liability, while the civil procedure law stipulates the qualification of litigation subject. A branch of a limited liability company is established according to law, has obtained a business license, has its own property, and can participate in civil litigation independently to facilitate litigation. In this regard, other judicial interpretations in the Supreme People's Court also hold this attitude.
Extended data
company law
Article 14 Branches and subsidiaries? Companies can set up branches. 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.
Chapter V Participants in Litigation
Section 1 Parties
Article 48 Citizens, legal persons and other organizations may be parties to civil litigation.
A legal person shall file a lawsuit by its legal representative. Other organizations are sued by their principal responsible persons.
Article 49 A party has the right to entrust an agent to apply for withdrawal, collect and provide evidence, debate, request mediation, file an appeal and apply for enforcement.
The parties may consult the relevant materials of this case and copy the relevant materials and legal documents of this case. The scope and methods of consulting and copying relevant materials in this case shall be stipulated by the Supreme People's Court.
The parties must exercise their litigation rights in accordance with the law, abide by the litigation order, and perform legally effective judgments, rulings and conciliation statements.
References:
Baidu Encyclopedia-Company Law
References:
Baidu Encyclopedia-People's Republic of China (PRC) Civil Procedure Law