The Legal Research On Multinational Parent Corporation's Liability To Its Subsidiaries

Under the world economic globalization, multinational corporations have become the key role in the global economy. Most of the multination corporations take the form of the parent and subsidiary corporation as their basic organization structure. Within this form of structure, the parent and subsidiary corporation are independent legal person to each other in the aspect of law, but the foreign parent corporation often controls its subsidiaries tightly in order to fulfill its global goal, which has great influence on the independent role of its subsidiaries. Due to the global strategy, this contradiction makes it possible for some parent corporations to avoid their legal obligations to the subsidiaries' creditors. How to force the parent corporation to shoulder the legal obligations to its subsidiaries under some conditions has become an important task to the scholars in this field.Based on the existing studies in this field, I analyze the underground reasons for this problem, introduce the related theories and typical legislation and judicial practice in the world, and afterwards mainly focus on the domestic law of China. After analyzing the current status of legislation in China, I make proposal on how to improve the Chinese legal system.This thesis includes four chapters:In the first chapter, I introduce the definition of the parent and subsidiary of multinational corporation, and bring forward the problem of the multinational parent corporation's liability to its subsidiaries through the research on the characters of the form of parent and subsidiary corporations.In the second chapter, I introduce the basic theories concerning this issue and analyze the value of these theories.In the third chapter, I introduce the worldwide typical legislation and judicial practice and make comments one by one.In the fourth chapter, I introduce the regulation concerning this issue in China, especially the theory of disregarding of corporate personality in the newly passed company law, afterwards make proposal on how to improve the related legislation in China.