Do multinational corporations have limited liability to their subsidiaries? Why?

Depending on what entity your company is, agree with the upstairs.

A limited liability company is a separate legal entity. According to Article 3 of the Company Law, a company is an enterprise legal person, has independent legal person property, and enjoys the property rights of a legal person. The company is liable for the company's debts with all its property.

Limited liability The shareholders of the company are liable to the company to the extent of their subscribed capital contributions; Shareholders of shares are liable to the company to the extent of the shares they subscribed for. Article 8 stipulates that a limited liability company established in accordance with this law must indicate the word limited liability company or **** in the name of the company. The shares established in accordance with this law must be marked in the name of the company with the implicit state of shares **** or the word joint-stock company.

Article 3 of the Company Law is an enterprise legal person, with independent legal person property and the right to enjoy the property rights of a legal person. The company is liable for the company's debts with all its property. The shareholders of a limited liability company shall be liable to the company to the extent of their subscribed capital contributions; Shareholders of shares are liable to the company to the extent of the shares they subscribed for.

Can a subsidiary be independently liable for civil liability? A subsidiary is a legal concept corresponding to a parent company, which refers to a company that owns more than a certain percentage of the shares of another company or is able to exercise actual control over another company by agreement. A subsidiary is also a form of corporate existence, although it is controlled by the parent company, the subsidiary is an independent corporate legal person, it has its own name and property, and independently enjoys civil rights and bears civil obligations.

Generally, both LLCs and Shares can set up their own subsidiaries. Therefore, although the subsidiary is economically under the control and control of the parent company, legally, it has an independent legal personality and can independently bear all the consequences and responsibilities caused by the company's actions, that is, the subsidiary has the corporate legal personality and independently bears civil liability in accordance with the law. Related Knowledge Links:

Can a branch be independently liable for civil liability? Legally speaking, a branch office is not an independent corporate legal person, nor does it have legal personality, and cannot independently enjoy civil rights and bear civil obligations: the branch office does not have its own company name and independent property, and its name and property are attached to the head office.

In terms of business, the branch office is the dispatched agency of the head office, which carries out business on behalf of the head office in the location of the branch, and all legal responsibilities of the branch are borne by the head office. Although the company does not have a legal status, China's "Company Law" still recognizes it as one of the forms of existence of the company, which is mainly to facilitate the expansion of large companies and encourage the company's cross-industry and cross-regional development.

Article 115 of the Company Law A company shall not provide loans to directors, supervisors or senior management directly or through its subsidiaries. Article 14 The company may set up a branch. To establish a branch, it is necessary to apply for registration with the company registration authority and obtain a business license.

A branch office does not have legal personality, and its civil liability is borne by the company. The company can set up a subsidiary, which has the status of a legal person and independently bears civil liability in accordance with the law.

Legal Analysis: Yes.

The company independently bears civil liability in accordance with the law. Economically the subsidiary is under the control and control of the parent company, but legally, the subsidiary is an independent legal person and bears civil liability independently.

Legal basis: Article 10 of the Company Law of the People's Republic of China The company may set up a branch. If a branch is set up by the Department of Things, it shall apply for registration with the company registration authority and obtain a business license. A branch office does not have legal personality, and its civil liability is borne by the company.

A company may establish a subsidiary, which has the status of a legal person and independently bears civil liability in accordance with the law.