Legal Regulations On Relationship Between Parents-subsidiary Companies

The occurrence of parents-subsidiary companies is a trend of economic development. Since the middle of last century, Bloc Company becomes an inevitable trend. The limited duties and the independent characters have been company's most main characteristics since the company form of enterprise comes out. Just because of these characteristics, the company is endowed the unique superiority. The form of parents-subsidiary companies can make it easier to control more subsidiary companies by a little capital. Therefore, the company can be a huge enterprise group which brings more benefit and advantages during the market economic competition.Everything has two sides. There are unique advantages in the mode of parents-subsidiary companies, while there are still weak points. Therefore, it is necessary to carry on the essential regulations, such as limiting parent company's power, protecting the rights of subsidiary company, a few shareholders and creditors of subsidiary company. As a shareholder, the company has the obligation of honesty. The subsidiary company and a few shareholders can protect their own rights through the derived lawsuit system. To some extent, the forbidden to the connection behavior also plays a role of limitation. The fair and just idea congeals humanity's law spirit and the law belief, manifesting people pursuit.In our country, the mode of parents-subsidiary companies also has a deep meaning. Though the new law of corporation plays an important role in the healthy development of the mode of parents-subsidiary companies, there are still lots of problems with the development and application of the theory research. Therefore, the research on the related theory should be made deeply. The paper is aimed to offer a proper system frame though the research.