What is a subsidiary?

The subsidiary is corresponding to the parent company, independent of the parent company in legal status, and has an independent and complete company management organization system.

A subsidiary in the company law refers to a company whose shares are held by another company or actually controlled by another company through an agreement. Although controlled by the parent company, the subsidiary company is completely independent in legal status. It has an independent and complete company management organization system, and has greater independence and flexibility in operation. Having an independent name and articles of association, having independent property, and being responsible for its own profits and losses, and carrying out various civil economic activities in its own name; You can also bear all the consequences and responsibilities caused by the company's behavior as an independent legal person. For example, when our legitimate rights and interests are damaged by a subsidiary, we can only sue this subsidiary, but we cannot go beyond it to sue its parent company.