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Nantong Jing Abacus Finance & Tax Consulting Co., Ltd.

Contact: Zhang Accounting

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Home > Industry News > Why is the company's operating activities determined by the parent company?

Why is the company's operating activities determined by the parent company?

Release date: 2019-02-22 Content from: http://jlangstudio.com/

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According to the company's credit base, a company whose operating activities are based on the credit of individual shareholders rather than the amount of company capital is called Renhe Company, such as an unlimited company; if the company's operating activities are based on the company's capital scale, it is called A joint venture company, such as a joint stock company, is a typical joint venture company; the establishment and operation of a company depends on both the shareholder's personal credit and the company's capital scale, such as the joint venture company. The parent company refers to a company that owns a certain amount of shares in other companies or can control and control the personnel, finance, business and other matters of other companies according to the agreement. The most basic feature of the parent company is that Nantong's bookkeeping is not based on whether it holds shares in the subsidiary, but on whether it participates in the business operations of the subsidiary. A subsidiary is a company in which a certain amount of shares are controlled by another company or are actually controlled and controlled by another company in accordance with an agreement. The subsidiary has the status of an independent legal person, owns its own property, its own company name, articles of association and the board of directors, and conducts business independently and assumes responsibilities. However, major decisions or major personnel arrangements involving the interests of the company must still be determined by the parent company. Article 13 (2) of the Company Law of China stipulates that a company may set up subsidiaries, which have the status of corporate legal persons and independently bear civil liability in accordance with the law.

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