Does the subsidiary debt need to be repaid by the parent company

In the specific enforcement practice, there have been many cases where the people's courts or other enforcement agencies confuse the property of the parent company and the subsidiary, and directly use the property of the subsidiary to repay the external debts of the parent company, and this confusion is more prominent in the case of a wholly-owned subsidiary. The relationship between the parent company and the subsidiary is the relationship between the shareholders and the company. The parent company and the subsidiary are independent legal entities, and both the parent company and the subsidiary have the status of corporate legal persons, and each has the property rights of the company, and should also bear their respective debts with the property owned by each other.

No matter what percentage of the equity the parent company has in the subsidiary, and whether it actually controls the subsidiary, it is only a shareholder of the subsidiary, and cannot directly dispose of the subsidiary's property, nor should judicial enforcement force the subsidiary's property to repay the parent company's debts. According to the provisions of the new Company Law, the assets of the subsidiary cannot be discharged to pay off the debts of the parent company, but the equity and equity income of the parent company in the wholly-owned subsidiary can be used as the subject of enforcement.

No, you don't need ...

The company is limited liability, the parent company only bears limited liability within the limit of capital contribution, and the subsidiary bears unlimited liability with its own property.

Legal analysis: The parent company and the subsidiary are legally independent of each other, the parent company is only a shareholder of the subsidiary, there is no joint debt between the two, the debts of the parent company will not be borne by the subsidiary, and the debts of the subsidiary will not be borne by the parent company.

Legal basis: Article 14 of the Company Law of the People's Republic of China A 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.

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

Does the parent company need to repay the debts of the subsidiaryThe parent company and the subsidiary are two separate entities, each of which is liable for the company's debts with all its assets. Therefore, the parent company does not need to disturb the old bureau to bear the debts of the subsidiary.

Although the subsidiary is in a position under the actual control of the parent company, and is subject to the restrictions and management of the parent company in many aspects, and some are even similar to the branches of the parent company, in law, the subsidiary is an independent legal person, engages in business activities in its own name, and independently bears civil liability.

The company has its own articles of association, a board of directors and other decision-making bodies for the company's operation. The subsidiary has its own independent property, and the property actually occupied and used by the subsidiary belongs to the subsidiary and has its own balance sheet. The subsidiary and the parent company shall each bear their own liabilities to the extent of their own property and shall not be jointly and severally liable to the extent of their own property.

The parent company, as the largest shareholder of the subsidiary, is liable for the debts of the subsidiary in business activities only to the extent of its capital contribution to the subsidiary.

No, you don't need ... The subsidiary and the parent company are independent legal persons, and as long as the parent company has completed the capital contribution in accordance with the law, it only bears limited liability for the liabilities of the subsidiary. However, if the parent company has improperly intervened or influenced the subsidiary's operating liabilities or asset losses, it may be held liable, including the subsidiary's senior executives.

Article 79 of the Contract Law of the People's Republic of China [Assignment of Creditor's Rights] The creditor may transfer all or part of the rights of the contract to a third party, except in any of the following circumstances: (1) it shall not be transferred according to the nature of the contract; (2) It shall not be transferred in accordance with the agreement of the parties; (3) It shall not be transferred in accordance with the provisions of law.